Longer lease terms in New York City are the latest sign of recovery in the office market. A new report from Avison Young shows that office users are beginning to sign longer lease terms.
During the pandemic, the average lease term in New York City fell to around 100 months, hitting a low in January of 96 months. As of May, lease terms climbed to 103 months, a new high since the start of the pandemic, and a sign of recovering confidence in office usage.
The prior term high was 123 months in 2018. Lease terms had been declining steadily, but remained above 100 months until falling dramatically at the start of the pandemic. From the 2018 high, lease terms fell 18.9% by January 2021. The share of lease renewals as a proportion of total leasing activity doubled during the pandemic, signifying a decrease in new lease transactions.
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Kelsi Maree Borland
