Q4 2023: New York City Office Market Report

The New York office market ended 2023 with vacancy increasing to 18.7 percent, up from 18.5 percent from the third quarter as over 2.12 million square feet of direct space hit the market with 204,616 square feet of that offset by occupiers taking sublease space. There were no buildings deliveries during the quarter. There are five buildings currently under construction totaling 481,476 square feet.

The return to the office is consistently increasing, albeit at a moderate pace, with occupancy reaching 51.3 percent prior to the holiday period, according to Kastle Systems. As a result, this put the New York metro 5th amongst the top ten metros and brought it over the national average. The busiest day of the week continues to be Tuesday where occupancy rates top out at 63.9 percent. With more than three years since workers started returning to the office, occupancy levels will likely not return to pre-pandemic levels in the short-term.