Separate reports from major brokerages CBRE and JLL show that Manhattan's office market is not dead, but even stagnant.
The findings show how “immune” the top end of the office market is, in CBRE's words, to the plight of those at the bottom. (Data for both companies includes both new leases and renewals.)
CBRE's study of Manhattan office rentals that contracted for more than $100 per square foot in 2023 (of which there were 128, two for more than $200) includes another surprising statistic: It was.
The market-leading Park Avenue prime location had a vacancy rate of just 9.4% at the end of the year, compared to a 20% vacancy rate for Manhattan as a whole.
The few remaining spaces on Main Street are quickly emptying out.
As we recently reported, PJT Partners is expanding at 280 Park Avenue in SL Green, and Stonepeak Partners has signed a deal at 245 Park in SLG.
Meanwhile, JLL reports higher numbers than CBRE for “$100+ clubs.” That number is a staggering 191 (the sample includes some laboratory and biomedical leases).
A report from the JLL team led by Cynthia Wasserberger said there were 12 transactions of $100 or more at Abby Rosen's Seagram Building at 375 Park Avenue, the most for a single building. It pointed out.
The location with the most square feet rented for at least $100 per square foot was 350 Park Ave. (485,460 square feet). 20 Hudson Yards (432,085 square feet). 280 Park Avenue (398,535 square feet); and 550 Madison Avenue (303,543 square feet).
“While many occupiers over the past few years have focused on right-sizing operations, 2023 has been all about growth and expansion for large occupiers,” Wasserberger said.
“All of the tenants participating in the top 10 deals expanded and grew significantly with new initiatives,” she said.
It may be several more weeks before all year-end rental deals are revealed. But one of the major tenants expanding is DoorDash, which signed a direct lease on Dec. 23 for 115,382 square feet at 200 Fifth Avenue. The building is owned by a joint venture between Boston Properties and JPMorgan Global Alternatives.
The deal marks significant growth for the online food delivery platform, which previously occupied only half the space under sublease.
Currently fully leased, the 860,000-square-foot modernized pre-war tower is home to Tiffany & Co.'s world headquarters, among other A-list office tenants, but is generally best known as the home of Eataly's Manhattan flagship store. It is being
