Real estate expanded with flexible workspace providers including WeWork, Regus, Knotel and The Yard. In 2017, shared and serviced office space providers leased 1.1 million square feet. The CBRE report noted the number of transactions with these types of tenants rose to 38, its highest annual level.

CBRE also reported the TAMI (technology, advertising, media and information) sector, second to FIRE accounted for 22% of the office leasing pie. This was down from its 28% average of the last five years but was unsurprising based on challenges still faced by media and news organizations still adjusting to the disruption caused by the internet.

Spotify's move and expansion at 4 World Trade Center and MongoDB's relocation to 1633 Broadway not only made headlines but helped drive up TAMI leasing numbers in 2017.

Tenants in 2017 predictably preferred new and renovated buildings. Considering both new deals and renewals, the 17.95 million square feet of total leasing space, with areas of 50,000 square feet or larger, tenants rented new or substantially renovated product totaling 7.87 million square feet or 42% of the buildings. This was an increase from 2016 when new and significantly renovated buildings accounted for 4.84 million square feet or 37% of the leases.

The CBRE report found rents remained stable year-over-year, at $72.91 per square foot at the end of 2017. This represented a second consecutive year of flat annual rent growth. Last year was also a year of landlord concessions with average tenant improve allowances increasing from $78 per square foot in 2016 to $89 per square foot in 2017.

With availability remaining almost the same year-over-year at 11.5%, although new office developments and substantially renovated products are entering the market, CBRE experts do not anticipate an excess of available office space to drive down rents in the upcoming year. The report notes that several Class A office properties vacated for new construction will not be available until at least three years.

Nonetheless, even with the robust office leasing, last year's office sales volume dropped 28% compared to 2016. The total volume in 2017 transactions above $30 million amounted to $15.9 billion, the lowest total in five years. The report attributed this to limitations on Chinese investment overseas, fewer 1031 exchange opportunities due to a limit in supply, and the strength of the debt markets resulting in decisions to refinance instead of sell.

The report concluded despite the drop in dollar volume of sales, average price per square foot remained stable, declining less than 2% year-over-year, indicating continued strong investor interest in Manhattan's office market.