In the first quarter of 2024, Manhattan's leasing activity experienced a notable decline, reflecting a shift in the real estate landscape. Despite this decrease, new leases and relocations accounted for a significant portion of leasing, indicating ongoing movement within the market. The introduction of large blocks of available space contributed to the overall availability rate increasing, signaling more options for potential tenants. Lease terms varied across different property classes, with Trophy lease terms seeing a decrease while Class A lease terms increased, largely due to attractive concession packages. The demand for high-quality office spaces remained strong, with Trophy and Class A properties accounting for a considerable percentage of leasing activity. On the employment front, office-using employment saw a modest increase since March 2020, showcasing some resilience in the workforce. However, job postings remained lower compared to pre-COVID levels, suggesting ongoing adjustments in the job market. Additionally, available sublet space saw a slight increase after several quarters of decline, indicating a potential shift in subleasing dynamics. Despite the overall decrease in leasing activity, there were still notable leases exceeding 100,000 square feet, slightly more than the previous quarter. Overall, the first quarter of 2024 reflected a market adapting to changing conditions, with a focus on new leases, varying lease terms, and a notable presence of demand in high-quality office spaces.

Trophy: Property in high demand.

Class A: High quality properties.