NYC Office Demand Drops 22% in April
NYC office demand has decreased 22% since March, equivalent to 3 million square feet, but it is still above the 2021-2023 monthly average, according to the latest data from VTS.
Small tenants (<10k square feet) have shown positive momentum, while the tech and legal sectors experienced declines. The average size of tenants rolling in for 2027-2028 is larger than those rolling in near term (2025-2026). Trophy assets saw the biggest rent increase in April, followed by Class A and Class B properties.
Institutional investors, including Boston Properties, Brookfield, Blackstone, and others, are signaling a shift towards capital deployment this year. VTS’ Leasing Prediction Outlook for 2024 suggests a 17% increase in leasing compared to 2023.
