“Amidst the uncertain times, Manhattan’s stalled office leasing market is primed for a late-year boom, presenting a unique opportunity for businesses to secure prime office spaces in the heart of the city.”
The Manhattan office leasing market is finally starting to show signs of life after a slow year. According to sources, there are at least a dozen large deals in the works, with some expected to be finalized by the end of the year. These deals could pave the way for even larger transactions in 2024.
Most of the deals involve older buildings that have been upgraded, reflecting a trend towards quality. Newer buildings, like 1 Vanderbilt and Manhattan West, are already fully leased. The flurry of deals before the end of the year is not uncommon, as it allows for tax benefits and gives industry professionals a chance to take winter vacations.
One notable deal in the works is at 22 Vanderbilt, where owner Milstein recently brought in Brookfield to assist with leasing and marketing. They have already secured a lease with public relations firm Joele Frank. Advanced talks are now ongoing with Bain & Co. and TD Bank for additional space in the building.
Another significant deal is for American Eagle at 63 Madison Ave, with a possible lease for Baruch College as well. A 100,000 square-foot lease for merchant banking firm BDT & MSD Partners at 550 Madison Avenue is also expected to be finalized soon.
Law firm Ropes & Gray is in discussions to take space at Related Companies’ 30 Hudson Yards, leaving their current location at 1211 Sixth Ave. Other companies, such as Susquehanna International Group, are also vying for space at Hudson Yards.
The market might see even larger deals in the future, with companies like Blackstone, American Express, and Jane Street Capital reportedly looking for around 1 million square feet each.
Overall, these pending deals are a positive sign for the Manhattan office leasing market, which has been struggling in recent years. The influx of new leases could help boost the market and lead to further growth in the coming years.