CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Cushman & Wakefield Publishes Legal Sector Leasing Insights and NYC Office Market Update

Jayden Lapin-Tatman • 2/8/2024
Legal Sector Leasing Marks Highest Industry Total in Over a Decade; Downtown Records Monthly High, while Overall Office Leasing Declines Year-Over-Year

New York, NY
– Cushman & Wakefield, a leading global real estate services firm, today released its Legal Sector Leasing Insights report for the fourth quarter of 2023 alongside a January 2024 Office Market Update report.

“Leasing activity in the legal sector was strong in 2023, comprising 23.7% of Manhattan’s overall leasing, marking the highest industry total in over a decade at 4.3 million square feet,” said Seth Schiffman, Senior Research Analyst. “Law firms showed a notable pattern of expansion throughout 2023, indicating confidence in the sector. Renewals were substantial, suggesting a preference for established locations and an overall positive sector outlook.”

Cushman & Wakefield’s Legal Sector Leasing Insights report revealed a year marked by strong activity in Manhattan with a total of 99 leases. Notably, an impressive 4.3 million square feet (msf) of space was leased throughout the year by the legal sector, 1.8 msf of which was secured during the fourth quarter alone, accounting for 41.5% of the yearly total leased for the sector.

The Sixth Avenue/Rock Center and Grand Central submarkets accounted for 68.8% of annual legal sector leasing. Renewals constituted 45.7% of the legal sector’s leasing activity for the year, while four of the five largest new leases by law firms involved expansions, suggesting a robust demand within core legal submarkets.

“Data from these reports presents a dual narrative: on one side, the legal sector is charting a course of growth, while on the other, we recognize the overall adjustment in Manhattan’s office leasing landscape. We continue to see the market respond with agility to the evolving needs of landlords and occupiers, as the data showcases a measured yet optimistic outlook for New York City,” added Lori Albert, Director of Tri-State Research.

Despite recording six new leases, each greater than 50,000 sf, Manhattan new leasing in January fell by 35.9% year-over-year, totaling nearly 1.6 msf. Midtown leasing registered at 1.2 msf, a 41.9% decline compared to the previous year, but marked the second-highest monthly total in the past 12 months, following December 2023. Downtown leasing reached a five-month high of 307,313 sf, driven by a large lease at Four World Trade Center.

Lease renewals in Manhattan totaled 298,566 sf in January, a 25.6% decline from last year, while new and renewal combined activity amounted to nearly 1.9 msf, down from 2.9 msf in January 2023. Overall vacancy in Manhattan fell by 30 basis points in January to 22.6% and sublease supply dropped to a 14-month low of 21.9 msf.

Overall asking rents in Manhattan increased by $0.06 per square foot (psf) in January to $73.39 psf, while Class A rents rose by $0.16 psf to $81.14 psf. Midtown overall asking rents registered a $0.35 psf monthly increase to $78.57 psf, as Class A rents climbed by $0.64 psf to $86.08 psf.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS