Manhattan Office Market
Availability has steadily declined over the past two quarters, closing the fourth quarter at 18.5%. Overall asking rents declined slightly year over year, driven by the leasing of space in high-quality buildings and a reduction in pricing for class B and C properties. The difference in direct asking rents between class A and B is currently at its widest point since 2020. Both class A and B direct rents experienced a decrease, but the rate of decline was higher for class B pricing. Construction deliveries hit their second-highest point in over two decades, as of 550 Washington Street, 2 Manhattan West and 66 Hudson Boulevard were all completed in 2023.