NYC Q4 2022 Manhattan Office Report

Manhattan office leasing declined by 46.5% during Q4 2022 to 4.94 million square feet. This was the lowest quarterly volume since Q2 2021 and the sharpest quarterly drop in demand since Q2 2020.

Manhattan’s 2022’s full-year leasing volume totaled 29.11 million square feet, a 16.6% increase over the 24.96 million square feet leased in 2021, but was 12.0% below Manhattan’s ten-year rolling average of annual leasing volume (33.09 million square feet).
Manhattan’s asking rent average increased by a notable 1.8% during Q4 2022 to $75.41/SF. The jump in pricing was largely driven by a mix of below-average priced spaces removed from the market, above-average priced spaces added to the available inventory and higher-repricing in pockets of Manhattan.
At 16.9%, Manhattan’s Q4 2022 availability rate expanded by 0.5 pp (percentage points) since the prior quarter. This was the first quarterly increase since December 2021.
Manhattan’s Q4 2022 net absorption was negative 2.78 million square feet, the highest quarterly level of negative absorption since Q2 2021. However, Manhattan recorded 1.32 million square feet of net positive absorption in 2022, a clear reversal from the 17.30 million square feet of negative absorption in 2021.

NYC Q4 2022 Manhattan Office Report

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Franklin Wallach

Executive Managing Director

New York

+1 212 716 3603

Franklin Wallach is an Executive Managing Director, Research & Business Development at Colliers. Franklin's role includes a focus on quarterly and monthly trends within the Manhattan and Brooklyn office markets while using multiple databases and maintaining contacts within the industry in order to provide in-depth market analysis to brokers and clients.

Franklin reports on the office market on a monthly and quarterly basis through analytical reports as well as presentations to tenants, landlords and the press. Data analyzed by Franklin includes: average asking rents, availability rates, concessions, absorption, tenants in the market, leasing activity, construction and future tenant demand. Franklin has been quoted by numerous periodicals including The Wall Street Journal and The New York Times.

Franklin’s expertise in synthesizing data into important, poignant and understandable observations has led him to be a key ingredient on a number of wins over the years. He has also parlayed this skill into offering strategic advisory on existing assignments as well as creative planning for business development pursuits and opportunities. Franklin's business development role enables him to formally assist the Colliers' brokerage practice in the pursuit, development and execution of new business.

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Chemerie Cheng

Managing Director - Research & Consulting

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+1 212 716 3829

With more than 20 years of experience in commercial real estate research and analyses, Ms. Cheng’s expertise includes complex database management, corporate real estate and advisory consulting.

Ongoing projects include: currently managing the Americas property portfolio for European based company; and conducting regular demographic and employee commutation analyses for Client data firms.

She was the Manager of Real Estate Analytics of Studley, Inc. While at Studley, she headed the analyses and production of the regular quarterly reports and in-depth studies of the effective rental rents for prime Class A office properties. Ms. Cheng coordinated with the local offices to develop and maintain property research databases for 15 cities, and established two new market reports as part of the company expansion.

Prior to Jones Lang LaSalle, Ms. Cheng was a Research Analyst with LaSalle Investment Management in New York City, focusing on the multifamily markets and the Northern New Jersey Industrial market.

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