Leases under 20K SF dominating market

TRD New York /
Jan.January 24, 2013 11:00 AM

There were some mega commercial deals in 2012, coming mostly from the usual suspects — Viacom, Morgan StanleyMicrosoft — but these massive leasing deals account for only 3 percent of leasing activity in a given year. The vast majority of leasing activity in 2012 and during the four years prior were for spaces under 20,000 square feet, according to the New York Observer.

Deals ranging from 1,000 to 20,000 square feet represented a whopping 82.6 percent of the deals signed over the past five years. And as tenants — especially tech tenants — increasing value smaller and higher efficiency spaces, the size of leasing deals will continue to shrink.

From 2003 to 2007, leases under 20,000 square feet accounted for 80.1 percent of the deals closed: an increase of 2.5 percent in the last five years. The rise of smaller leases has also led to a rise in vacancies for massive office buildings. For instance, vacancies in the Sixth Avenue submarket are on track to reach a 20-year high.  [NYO]Christopher Cameron


Related Articles

arrow_forward_ios
Chetrit Group principal Michael Chetrit and 850 Third Avenue (Google Maps)

What tenants are paying at Chetrit’s 850 Third Ave

What tenants are paying at Chetrit’s 850 Third Ave
What tenants are paying at Shvo’s “Big Red” building

What tenants are paying at Shvo’s “Big Red” building

What tenants are paying at Shvo’s “Big Red” building
One Vanderbilt (Credit: Max Touhey)

SL Green opens One Vanderbilt as leaders urge return to office

SL Green opens One Vanderbilt as leaders urge return to office
25 Kent Avenue and Amazon CEO Jeff Bezos (25 Kent; Getty)

Amazon Music is coming to Brooklyn’s office market

Amazon Music is coming to Brooklyn’s office market
10 Jay Street and Rent The Runway CEO and co-founder Jennifer Hyman and a store location in New York City (Getty; ODA Architecture)

On the rack: Rent the Runway’s Dumbo space up for rent

On the rack: Rent the Runway’s Dumbo space up for rent
Vornado CEO Steven Roth and TheMART (Getty, VNO)

What tenants are paying at Vornado’s theMART in Chicago

What tenants are paying at Vornado’s theMART in Chicago
Manhattan office real estate market is getting hit by subleasing (iStock)

Spike in Manhattan’s office sublease explained

Spike in Manhattan’s office sublease explained
Jeff Bezos and Bellevue Washington (Getty; Unsplash)

Amazon nabs 2M sf of new office space near Seattle

Amazon nabs 2M sf of new office space near Seattle
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...