The flight to quality by office tenants isn't having a huge effect on overall occupancy levels—which still are struggling to get over 50% in the top US markets, according to Kastle's latest weekly barometer—but it has created a bonanza of premium-priced leases in NYC.
According to JLL's Year-End Recap, 190 Manhattan office leases were priced at more than $100 per SF in 2022, up from the previous record of 164 in 2021.
These premium leases encompassed 6.1M SF, more than double the space of the top-dollar leases in 2021 and about 25% of the overall of leasing total of 24.3M SF for Manhattan in 2022. The 2022 leasing total represented a 24% increase over leasing activity in 2021 but was still well below the 25-year pre-pandemic average of 35.5M SF.
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