New NYC Office Report by Avison Young Shows the Different Leasing Strategies Tenants Are Using

A new report that focused on New York’s office market during 2023’s Q3 has shown interesting results. The study, conducted by Avison Young, showed that New York City's office market is seeing different strategies from occupants of all sizes in response to current market conditions.

Larger occupiers are mostly renewing their leases (67.7%), while smaller and mid-size occupiers are taking advantage of tenant-friendly conditions to relocate (67.6%). Among them, a smaller portion is choosing to renew their leases (25%), and an even smaller percentage is pursuing expansion (7.4%).

Dorothy Alpert, Principal and Tri-State President at Avison Young, explained that leasing activity in Manhattan has decreased in a notable manner, particularly when compared to the same period in 2022. According to her, only 24 million square feet will be leased by the end of the year. Nevertheless, she highlighted a silver lining, stating that different tenants are exploring different strategies in order to either renew their leases or expand them.

In other words, large companies are more likely to stay put, while smaller and mid-sized companies are more likely to move to new spaces. This is because larger companies have more resources to invest in their existing spaces, while smaller and mid-sized companies are more likely to be looking for ways to save money.

The overall office market in New York City is still sluggish, but there are some interesting trends emerging. It will be interesting to see how these trends continue to develop in the coming months and years.

If you wish to learn more, check out the full report by Avison Young here.