Manhattan Tenants Go For Big Office Leases in 2017

Nicole LaRusso, director, research & analysis at CBRE

NEW YORK CITY—CBRE coined 2017 the “Year of the Large Deal.” Thirty-three leases signed in 2017 totaled more than 100,000 square feet, including 11 leases of more than 250,000 square feet. These large space leases accounted for 8.2 million square feet, amounting to 29% of the year’s total leasing. This was significantly higher than the previous ten-year average of 18%.

For leases over 100,000 square feet: FIRE (financial services, insurance and real estate) tenants completed 13 transactions, the largest number for this sector in the last decade. TAMI (technology, advertising, media and information) tenants completed seven transactions.

Across industries, more than 60% of the greater than 100,000 square-foot leases were for space in new construction or assets undergoing substantial renovations.

Larger offices can indicate some companies are growing. Others are upgrading their space or consolidating from multiple offices into a single location. “The things that drive companies to new construction or substantially renovated property is that they provide a more efficient layout and better efficiency overall,” says Nicole LaRusso, director, research & analysis at CBRE.