Before the pandemic, Manhattan's office sector never had an average vacancy rate of more than 11% a year for decades. Now, city officials are warning that Manhattan building owners will face office vacancy rates of more than 20% for most of this decade.
NYC's budget analysts and a growing number of CRE analysts are projecting that the office vacancy rate in Manhattan—now at a record 22.7%—will continue to languish above 20% through 2026.
Asking rents for office space will end the year below pre-pandemic levels—their lowest level in a decade—according to the city's latest forecasts, Bloomberg reported. Asking rents in Manhattan offices averaged $75.13 per square foot in April 2023, down 50 cents in a YoY comparison, according to a Colliers market report.
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