New York Office Market Report
Stock Expansion Reaches Post-2020 High;
Tenants Flock to Upper-Tier Properties
Acute supply injection tests demand for amenity-rich space. Prodigious stock growth is underway this year as developers finalize multiple high-profile trophy assets, which broke ground before the onset of the health crisis. However, a majority of this space has been leased prior to completion. Larger firms are eagerly pursuing square footage in Class A properties to entice workers back to Manhattan and Brooklyn offices. More than 3.1 million square feet was absorbed on a net basis in this segment during the second quarter alone, the highest figure in nearly half a decade. Net absorption in other office classes was slightly negative during the same time frame, as tenants shied away from lower-tier properties.