- Manhattan tenants leased 3.38M SF of office space in April, up 23% year-over-year, according to Colliers, signaling continued recovery in the market.
- Amazon signed April’s largest deal with a 330K SF lease at 10 Bryant Park, among several major new leases contributing to tightening availability.
- If current demand persists, Manhattan’s leasing volume could reach 44.3M SF in 2024, the highest since 2000, despite lingering economic uncertainty.
Manhattan’s office leasing market continued its upward trajectory in April, following the strongest first quarter since 2019, per The Real Deal.
According to Colliers, tenants leased 3.38M SF last month, a 23% increase compared to a year ago, even as overall volume slipped slightly from March. Availability dropped to 15.7%, the lowest since February 2021, indicating strong momentum in the city’s post-pandemic office recovery.
A Strong Year In The Making
If the current pace holds, Manhattan’s office leasing volume could hit 44.3M SF by the end of the year—the strongest performance since 2000. Colliers’ Franklin Wallach emphasized that continued healthy demand and shrinking supply are essential for a full market recovery, as blocks of space will continue to be delivered to the market during the year, and healthy leasing volume will be needed to counter this.
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The Details
April’s five largest leases were all new signings rather than renewals or expansions, highlighting tenants’ willingness to relocate and seek better spaces. Amazon led the month with a 330K SF lease at Property & Building Corp’s 10 Bryant Park, replacing HSBC as the tower’s primary tenant.
Other major deals included:
- Goodwin Procter’s 250K SF, 20-year lease at BXP’s 200 Fifth Avenue in the Flatiron District.
- Apollo Global Management’s 100K SF lease at 590 Madison Avenue, owned by the State Teachers Retirement System of Ohio.
An even larger deal—Deloitte’s reported 800K SF lease at 70 Hudson Yards—was not included in the report due to lack of confirmation.
Market Dynamics
Availability rates tightened in key submarkets Midtown and Midtown South while holding steady Downtown. Sublet space continued its seven-month streak of decline, suggesting stronger demand and healthier absorption rates. Average asking rents remained stable year-over-year at $74.37 PSF, though still 6.4% below March 2020 levels.
Why It Matters
The surge in Manhattan leasing signals a crucial milestone in the city’s office market recovery. Robust tenant demand for quality space, coupled with diminishing sublet availability, reflects increasing confidence despite broader economic uncertainties. Developers and landlords are optimistic that sustained momentum could finally restore pre-pandemic vitality.
What’s Next
Continued tenant appetite and tightening supply will be key factors to watch through 2024. Manhattan’s office market appears poised for a strong year, but macroeconomic shifts—including policy changes and global market instability—could still impact the trajectory.
