Q3 2023 leasing remained muted this summer despite a major 710,000-square foot lease signed

Manhattan office leasing totaled 6.3 million square feet (ms) in Q3 2023, 31.1% lower than last year's particularly active Q3, and aligned with the recent decline in office-using employment. Activity is typically more subdued in the summer months, which was the case this year, and 2023 leasing is now on track to fall short of last year's total by year-end. Legal services and financial services tenants were the most active market participants once again, accounting for 52.7% of total leasing activity. Overall, tenants continue to take a "wait and see" approach. Leasing activity was split evenly between new leases and relocations, and renewals and expansions. The distribution is on par with last quarter and indicates a great deal of activity remains expiration-driven rather than discretionary. The "bright spot" however, is the expansionary nature of those tenants who did choose to relocate. Among such tenants who signed leases of 20,000-sf or greater in Q3, 70.0% took on more space.

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