New York City Office Space property market in 2024

New York City Office Space – Talking about New York City, one might easily understand only the most famous part of it – Manhattan. And that would not be entirely wrong, as this borough determines the social and economic life of the entire City.        In fact, New York City consists of 5 different boroughs: Manhattan, Brooklyn, The Bronx, Queens and Staten Island. Each one of them has its unique characteristics and has enjoyed different history and development.

There are vast opportunities if you want to set up your office on all the 5 boroughs and depending on the profile of your business, you will surely find your place in New York City. Manhattan is the epicenter of the governmental, financial and entertainment business, while Brooklyn and The Bronx are more and more inviting towards healthcare companies and all kind of start-ups. Staten Island is an excellent opportunity to scale down costs and/or establish your first office as starting company or non-profit. There is office space for everyone in New York City.

 New York City Office Space for lease in 2024

To get a grasp on the office space lease market, have a look to our quick overview for each of the boroughs. Manhattan was and remains the borough, which determines the leasing market for office space. It is a center of financial institutions, governmental and municipal agencies, international trade companies and many entertainment businesses. Do not expect a high vacancy rate – it hovers around the 16-22% mark and the demand for big lots of office space remains high as the area remains attractive for tenants ready to pay for location.

Predominantly a business area, where permanent residents are situated in specific areas, the choice of Class A and Class B buildings for space lease are plenty.

NYC Asking rates for leasing of Class A office space are between $60 and $140. Class B office space leasing rates range between $50 and $80 per square foot per year. 

Price also can range if you opt for border areas and take advantage of their location and the excellent transport scheme in New York City. For example office space leasing rates in Harlem area (part of Manhattan) are between $30 and $50 per square foot. While Long Island City leasing rates are much higher than the average for the whole borough (Queens) it belongs to.

Brooklyn – being mostly a residential area – is also benefiting from the overall high demand of office space for lease in New York. It attracts young entrepreneurs and tech start-ups with its close location to Manhattan and the excellent transportation. Office space can be found from $27 in South Brooklyn Waterfront to $65 per sq. ft. in the trendy DUMBO area.

Queens is also a big residential area and one of the very ethnically diverse. Its proximity to the La Guardia and JFK airports determines it as a place where aviation-related businesses prefer to lease office space. Leasing rates average $41 in Queens and are well below Manhattan ones.

The Bronx and Staten Island are mostly residential areas with smaller office spaces available for rent. They are currently undervalued and office space can be found as low as $10 to $40 if you don’t mind a peripheral location and you have to lower the cost of your business significantly.

Office Space for sale in New York

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There are plenty of opportunities of office space for sale, largely depending how big your budget is. New developments in Long Island City in DUMBO are attracting tenants quickly and the market is reaching high demand. If you want to invest, you better find an undervalued asset with high potential in future – as for example Harlem or Staten Island.

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