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

(Credit: iStock)

Data Alert! Manhattan office leasing through November 2019

Fosun Property’s Bo Wei, Refinitiv’s David Craig and 28 Liberty Street (Credit: Getty Images, Google Maps)

Fintech firm signs on for massive lease at 28 Liberty

From left: 333 Johnson Avenue, 250 Livingston Street and 12 MetroTech Center (Credit: Google Maps)

City agencies dominated Brooklyn’s biggest office leases of 2019

Savannah's Christopher Schlank with One Court Square and Tishman Speyer's Rob Speyer with the JACX at 28-10 Queens Plaza South (Credit: Getty Images, One Court Square and CityRealty)

LIC dominated Queens office leases in 2019

Amazon CEO Jeff Bezos with 410 Tenth Avenue and 1251 Sixth Avenue with Mitsui Fudosan America’s John Westerfield (Credit: Google Maps, Getty Images, Wikipedia)

Amazon’s West Side deal tops list of Manhattan’s biggest December office leases

437 Madison Avenue, 50 Hudson Yards, and 1 New York Plaza (Credit: 437 Madison, Hudson Yards, Wikipedia)

Manhattan office leasing just had its most active year since 2001

30 Hudson Yards, 532 Washington Street and 401 West 31st Street (Credit: Wikipedia, COOKFOX, StreetEasy)

NYC’s 10 most valuable office leases of 2019

From left: 50 Hudson Yards, 341 Ninth Avenue, 30 Hudson Yards (background) with Google's Sundar Pichai, Amazon's Jeff Bezos and Facebook's Mark Zuckerberg (Credit: Google Maps and Getty Images)

Big tech puts Manhattan office leasing within reach of annual record