Manhattan Office Leases Boast Record Number of $100 PSF-plus Rents in 2022

Although Manhattan’s post-pandemic office market continues to struggle with large vacancies fueled by the remote and hybrid work schedule era, on an optimistic note, 2022 saw a “record number of new leases signed for more than $100 per square foot.” A total of 190 leases fetched a triple-digit rent, representing a 15.9 percent increase year-over-year; and the 6.1 million square feet leased is more than double the space signed in 2021. Starting rents of $200-plus accounted for 15 of the transactions, while 2 transactions hit $300-plus rents. Among the C-note deals, 62% of the priciest ones were moves to brand-new towers or older buildings that underwent significant upgrades and renovations.