Q3 2023 New York City Office Market Report
The New York office market hits the three-quarter mark of the year with vacancy increasing to 18.5 percent, up from 18.0 percent from the second quarter. A major driver for the increase in vacancy was the more than 2.28 million square feet of direct space that hit the market; however, this was offset by the 1.47 million square feet of sublease space that was taken up by occupiers.
There was one delivery during the quarter, bringing 267,227 square feet of space to the market. With this delivery, there are only three buildings currently under construction totaling 380,941 square feet. The lack of office development in the pipeline may help bring more stability to the market.
Kastle Systems reported that 49.1 percent of New York office workers are returning to the office, placing the metro as sixth amongst the top 10 metros and brought it within a point of the national average. The busiest day of the week continues to be Tuesday where occupancy rates top out at 62.5 percent. Landlords will be watching to see if occupancy numbers drift higher to close the end of 2023.
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