Manhattan Office Market Sees Record-Breaking Leases in 2024
Record Number of Leases above $200 per Square Foot
A record 28 new leases were signed in 2024 at rents above $200 per square foot, according to a recent report by JLL. This represents the top tier of the top tier, with the deals exceeding the previous record of 20 such leases in 2023.
Rise of the C-Note Leases
The C-Note leases, which were once rare, have become more common, with JLL reporting 212 deals inked for at least $100 per square foot in 2024. This represents a significant increase from the pre-pandemic average of 110 C-Note leases per year.
Top-Tier Properties
The Solow Building at 9 West 57th Street was among the office buildings that leased space for more than $200 per square foot, according to sources. The JLL report highlighted a banner year for the Manhattan office market, with 30.2 million square feet of space being leased, a 19.4% increase over 2023.
Market Trends
The top-of-the-market leasing represented almost a third of the whole market in 2024, said JLL vice-chairman Cynthia Wasserberger. The larger, $100-plus pinnacle class of 2024 accounted for an unprecedented 9.8 million square feet of space, exceeding the previous high of 8.8 million square feet in 2019.
Major Transactions
Two major closings ended the year with a bang on New Year’s Eve, with Stonepeak and Visa each taking 150,000 square feet of Warner Brothers Discovery sublease floors at rents above $100 per square foot. SL Green’s One Vanderbilt drew a staggering $280 per square foot for a high-floor suite, sources said.
Conclusion
The Manhattan office market has seen a remarkable recovery from the pandemic, with a record number of C-Note leases and a strong demand for quality office space. The top-tier properties, such as Park Avenue and the Seagram Building, continue to be in high demand, with many deals being signed at prices above $200 per square foot.
FAQs
Q: What is the record number of C-Note leases in 2024?
A: 28 new leases were signed at rents above $200 per square foot in 2024.
Q: What is the average rent per square foot in most Class-A buildings?
A: The average rent per square foot in most Class-A buildings is between $60-$90.
Q: What is the most lucrative deal on a per-square-foot basis?
A: The likely most lucrative deal is at SL Green’s One Vanderbilt, where law firm McDermott, Will & Emery paid a staggering $280 psf for a high-floor suite.
Q: What is the demand for quality office space?
A: There is an almost insatiable demand for quality office space, particularly from financial services, which claimed 12.2 million square feet, or nearly 40% of all 2024 deals.
