Mixed Manhattan Message

There’s good news and bad news for the commercial real estate industry in the latest office leasing numbers for Manhattan. The bad news: The total amount of office space leased dropped by roughly 47 percent in the fourth quarter compared with the three months prior. The good news: In 2022, the priciest available office space — that asking at least $100 a square foot — did especially well compared with previous years.

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— Tom Acitelli, Co-Deputy Editor

Manhattan Office Leasing Declines 47 Percent in Q4: Colliers

Manhattan office leasing declined by nearly half in the fourth quarter of 2022 compared to the previous quarter, according to brokerage Colliers, striking an ominous note for the city’s office market as it enters a fourth year of the pandemic. With 4.9 million square feet of space leased, it was the lowest quarterly leasing volume since the second quarter of 2021 and the sharpest quarterly drop since the pandemic began in March 2020, the report found. Fourth-quarter leasing was also down 43 percent from the same time in 2021.

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Manhattan’s Priciest Office Space Hit Record Leasing in 2022

Offices charging above $100 per square foot in Manhattan saw the most leases in 2022 than in any year prior, as Class A space continues to dominate the market post-pandemic, according to a CBRE report. Manhattan saw 137 office leases priced in the triple digits last year, up 27 percent from 2021, according to CBRE, a brokerage. Of those deals, 16 closed above $200 per square foot, another record total for that price.

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