Leasing accelerates and available space drops in a strong Q3 for Manhattan’s office market

Manhattan office leasing velocity built on last quarter’s positive momentum, totaling 9.5 million square feet (msf) in Q3 2024, the strongest quarter of leasing since Q4 2019. Leasing volume now totals 25.0 msf through the first three quarters of the year, putting Manhattan on track for its strongest leasing year post the start of the pandemic. Blackstone’s 1,058,571-square foot renewal and expansion at 345 Park Avenue was the largest lease of the quarter, though three other large leases by Christie’s, Willkie Farr & Gallagher, and Ares Management all topped 300,000 square feet (sf). Financial Services tenants were particularly active in Q3 2024, accounting for 38.8% of all leasing volume, including four of the top ten largest leases. Despite strong leasing velocity, Manhattan office employment has been shrinking since last summer and is currently down 1.1% year over year, with such jobs now below their pre-COVID peak level. Persistent employment declines bear continued monitoring, despite optimism surrounding the most recent Federal Reserve rate cut.

Read the full report