According to CBRE’s Manhattan Figures Q2 2023 report, the second quarter of 2023 was not that much different to the first quarter of this year as general economic unease, high interest rates and a slow return to the office continued to weigh on office leasing.

While Q2 office leasing activity for Manhattan was up 14% quarter-over-quarter, the total of 4.39m sq ft was down 22% from the five-year quarterly average of 5.66m sq ft. Moreover, year-to-date leasing activity totalled 8.24m sq ft, a 29% decline from the same time last year. Renewals were prominent, totalling 1.29m sq ft in Q2, bringing the year-to-date total to 2.78m sq ft.

“While the consumer and labour markets have shown tremendous resilience thus far, concerns over credit tightening and a potential recession continue to temper office leasing,” said Michael Slattery, CBRE's Director of Tri-State Research. “However, the market is bifurcated with some submarkets seeing strong activity while others are much slower. Long-term optimism about New York City’s strength prevails as the market holds major appeal for occupiers seeking top talent.”