Manhattan Office Leasing Demand To Grow In 2023, Announce Cogent Realty Advisors
Manhattan employees are slowly coming back to offices, shows a recent Cogent Realty Advisors report. An average weekday sees almost half (49%) of office workers at the workplace – an 11% increase over April 2022 – with January estimates at 54%. And while just 9% are in the office five days a week, the majority of employees expect their in-office staff number to either stay the same or increase in the near future.
The effects of this trend on the lease market, however, are more complex. Citing data from the Partnership for New York City, TheRealDeal, and CoStar, the new report indicates that, in spite of the expected upward trend, the current market is still favoring tenants.
“Office tenants continue to have the advantage when negotiating new leases and lease renewals,” said Cogent Realty founder Mitch Waldman. “There is fierce competition among property owners to secure new business and retain existing tenants. Class A and ‘in demand’ properties are competing by offering enhanced tenant incentives. These include rent concessions (the free rent period) and cash contributions used for the construction of new offices.”
The general market trend will likely favor a mix of remote and office work, with current figures indicating most workers are in office for just 3-4 days a week. According to the report, over three quarters of employers have opted for a hybrid model, with most citing employee preference as the driving factor behind their post-pandemic work policy.
To attract tenants, landlords are offering flexible short-term leases, new co-working facilities, and extra amenities in existing spaces, says the report. Nonetheless, the asking rent continues to grow, with $56.16 per square foot being the weighted average across Manhattan. The asking rents in some of the more popular neighborhoods range from $47.83 per square foot in Brooklyn Downtown to $74.03 in Tribeca.
About Cogent Realty Advisors
Founded in 2002 by experienced commercial realtor Mitch Waldman, Cogent Realty Advisors is an independent real estate broker representing businesses interested in leasing office space in New York City. The company provides no-fee tenant representation, lease agreement negotiation, sub-leasing and other services.
More information is available at https://rentnyoffice.com
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