By Richard Persichetti, Vice President, Tri-State Research Lead
Leasing continues to dominate headlines, as there was 6.7 million square feet of new leasing activity in April and May. These two consecutive strong months have put new leasing activity ahead of 2017’s pace by 7.9 percent with 13.8 million square feet leased. Since the start of 2017, there has been a total of 56.3 million square feet leased, but since the conversation on healthy Manhattan office leasing activity continues on and on, let’s change it up and examine leasing by industry and size range over the past 17 months.
Breaking down the data by size range made me think of the teams in the World Cup, which starts on June 14th. Although I am still shocked that Team USA and Team Italy did not make it this year, I was not surprised to uncover that in the last 17 months, financial services has dominated leasing in every size range. I was even less shocked to find out that TAMI took the number two spot for every lease size range as well. The interesting discovery is that four different industries make their way into the third spot in the size breakdowns covered in this analysis.
10,000 to 19,999 sf:
- Financial Services – 101 leases totaling 1.4 msf
- TAMI – 78 leases totaling 1.1 msf
- Professional Services – 52 leases totaling 689,878 sf
This size range is in the sweet spot for professional services firms like architecture, management consulting, and accounting firms.
20,000 to 99,999 sf:
- Financial Services – 93 leases totaling 3.5 msf
- TAMI – 73 leases totaling 2.9 msf
- Real Estate – 44 leases totaling 1.7 msf
The real estate sector has been strong in mid-sized leases over the past 17 months as coworking firms and flexible office space providers dominate this size range. Knotel leased the most space with 16 leases totaling 442,649 sf, as this flexible office space provider continues to increase its presence throughout New York City.
100,000 to 249,999 sf:
- Financial Services – 16 leases totaling 2.5 msf
- TAMI – 13 leases totaling 1.9 msf
- Legal Services – 8 leases totaling 1.1 msf
Large law firms have been active since the start of 2017, and although most are finally partaking in the densification trend, these firms still tend to be the largest occupiers of space in the city.
- Financial Services – 8 leases totaling 4.7 msf
- TAMI – 7 leases totaling 2.3 msf
- Public Services – 5 leases totaling 1.8 msf
The public services sector, led by different departments of New York City and State agencies, was active over the past 17 months with three new leases and two renewals in this size range.
Richard Persichetti currently serves as the Vice President, Tri-State Region Research Lead. His 18-plus years of market research experience makes him an expert on the New York City market and allows him to act as a knowledgeable resource for clients. Rich is responsible for the oversight of the research and organization of statistical data for New York, New Jersey and Connecticut and works with local, regional and national marketing in order to enhance Cushman & Wakefield’s growing research platform. Through this role, Rich conducts primary and secondary research, tracking local real estate markets and economic trends.