David Ratner
Jan 20, 2024
The office leasing market in Brooklyn and Manhattan for Q4 2023 exhibited distinct trends
Q4 2023 Office Leasing Report for Brooklyn & Manhattan
Executive Summary:
In this edition of our report, we provide a detailed look at the office leasing trends in Brooklyn and Manhattan during the fourth quarter of 2023. This period showcases significant changes in the market, indicative of post-pandemic economic recovery.
Brooklyn Overview:
- Leasing Activity: A 15% increase in leasing activities, focusing on spaces under 5,000 sq ft.
- Average Rent: Average rent up by 3.5%, reaching $60 per sq ft. Premium areas like DUMBO saw rents around $70 per sq ft.
- Popular Areas: DUMBO, Brooklyn Heights, and Downtown Brooklyn represented 40% of leasing transactions.
- Tenant Demographics: Creative sectors expanded by 20%, and tech startups increased their space leasing by 25%.
Manhattan Overview:
- Leasing Activity: A 12% rise in leasing activities, with Hudson Yards and Midtown seeing significant deals.
- Average Rent: Average rents increased by 4%, with prime areas averaging $80 per sq ft.
- Popular Areas: A 30% increase in activity in Hudson Yards and Midtown South.
- Tenant Demographics: Finance and law firms made up 35% of new leases; tech companies comprised 25%.
Market Trends:
- Hybrid Work Models: An 18% rise in demand for flexible office spaces due to the hybrid work trend.
- Tech and Creative Growth: These sectors now constitute 45% of the office leasing market.
- Sustainability Focus: Green-certified buildings experienced a 22% higher leasing rate.
- Infrastructure Developments: A 10% increase in leasing activities in areas with new transportation projects.
Forecast for 2024:
The 2024 outlook anticipates a 10-15% increase in leasing activities, propelled by tech sector growth and the stabilization of hybrid work models.
Conclusion:
The Q4 2023 office leasing report underscores a strong recovery and growth phase in Brooklyn and Manhattan’s markets, with positive trends across leasing activities, rents, and sector diversification.
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