The pandemic’s negative impacts on the Manhattan office market are evident. A large majority of companies continue to operate virtually for the foreseeable future and office usage in New York is among the lowest in the nation. Available sublet space from firms operating remotely has increased by more than 50% over the past 12 months. Long-term leasing activity has declined and much of the leasing that has taken place occurred in the form of renewals. With future demand largely uncertain and other landlords willing to offer tenants enticing deals to relocate during this time, some owners are now open to renewals that extend only three to five years. Opportunities exist in the market, but are mostly being examined by firms needing to respond to an upcoming lease expiration or real estate requirement.
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