Q1 2023: New York Office Market Report

The New York office market started 2023 with vacancy increasing to 17.6 percent, up from 16.6 percent at the end of 2022 as over 2.75 million square feet of direct space hit the market, in addition to 1.49 million square feet of sublease space. With record high deliveries in terms of square footage last quarter, this quarter was notably down with just 48,000 square feet in new space delivering. Still, there is just over 2.5 million square feet of new space under construction. Return-to-work for the market has been slow, with 46.8 percent of New York office workers coming back to the office compared to pre-pandemic levels, according to Kastle Systems. As a result, the New York metro ranks 6th amongst the top 10 metros. The busiest day of the week continues to be Tuesday, where occupancy rates top out at 59.5 percent.