The NYC Real Estate Market is Improving.  Is now the Time to Act? 

Below are the 10 stats which speak to the improving state of the office

market and NYC economy as of January 2025.

1. 2024 Year-End Leasing Activity was 24% higher than 2023

2. The Availability Rate for Manhattan stands at 18.5%. It lowest in 3

years.  (To provide additional context in 2019 it was 11.2%)

3. Sublease Availability is down 23% from its all-time high of February

2023

4. Subway Ridership is 77% of 2019 figures & Rail Ridership is 90%

of 2019 levels

5. Midtown Better Buildings have an availability rate of 9.9%

6. Large Tenants – There are currently 119 requirements with Tenants

looking for 50,000 sq ft and more totaling 22.9 mm sq ft. ( In 2018/19

this number was 18.6 mm sq ft.)

7. The Taking Rent Index inched back to 93% of the asking rent.  Still

below its pre-pandemic levels of 95%

8. Conversations – 21 mm sq ft of office space is at various stages of

conversation away from office space.

9. NYC office using employment is 100% compared to pre-covid

10. Air Traffic Passengers is at 105% of pre-covid levels.

The office market continues to improve and evolve.  While remote and

hybrid continue to be part of the workplace strategy, more and more

companies are pushing a return to work and major corporations such as

Blackstone, Apple, Amazon, Bloomberg, and IBM continue to expand their

real estate footprint.  It is also clear that both for profits and nonprofits are

demanding a higher quality office product and easier access to

transportation for their employees.  As vacancy in Midtown continues to

decline, other neighborhoods are starting to see the spillover effect. With

office conversions on the rise and the less desirable office space being

removed from the inventory, all signs point to a market that will continue to

improve and tighten.

I would welcome to learn about your company’s/organizations occupancy objectives

and offer my thoughts and strategies.

Please feel free to reach out.

Paul Walker

212-984-7117

Paul.Walker@cbre.com