Manhattan Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $73.90 2023 Avg. Asking Rent
  • 17.07% 2023 Office Vacancy Rate
  • $2.4B2023 Total Office Sales
  • $833.93Avg. Sale Price/SF

Manhattan office price per square foot in 2023 was $73.90 on average. The local office market recorded an average vacancy rate of 17.07% across all asset classes combined. The 20 transactions that closed here throughout 2023 amounted to a total sale volume of $2.4B. Manhattan office space commanded an average sale price per square foot of $833.93.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Manhattan Class A & A+ Office Space$103.63
  • Manhattan Class B Office Space$52.69
  • Manhattan Class C Office Space$45.52
  • New York Class A & A+ Office Space$64.56
  • New York Class B Office Space$36.62
  • New York Class C Office Space$45.97

Manhattan, NY Office Asking Rents by Class

Average office rent in Manhattan rested at $73.90 per square foot in 2023. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Manhattan averaged $103.63 per square foot. Across all submarkets, class B office space recorded an average asking rent of $52.69 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $45.52 per square foot, on average. Comparably, statewide New York average office rents by class in 2023 were: $64.56 per square foot for class A office space; $36.62 per square foot for class B office space; $45.97 per square foot for class C office space.

2023 Office Vacancy Rates in Manhattan

Submarket Asking Rents Vacancy Rates
Plaza District $124.75 14.13%
Soho $83.79 24.57%
United Nations - Turtle Bay $68.04 13.24%
Gramercy Park $64.52 21.01%
Times Square - Hell's Kitchen $56.37 19.21%
Greenwich Village $54.71 29.23%
Murray Hill $54.16 20.77%
Harlem - North Manhattan $53.54 39.50%
Financial District $53.00 20.25%
Chelsea $48.44 13.72%
World Trade Center $47.58 13.84%
Tribeca $44.00 14.71%
City Hall $43.59 10.04%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Manhattan market was 17.07% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Manhattan was 10.04% in the City Hall submarket, while the highest office vacancy in the market was 39.50%, recorded in Harlem - North Manhattan.

Office Spaces for Rent in New York

Manhattan Office Sale Price per SF

  • $833.932023 Avg. Price per SF
  • 2.31%Y-o-Y Avg. PpSF Change
  • $2.4B2023 Office Sales Volume
  • 202023 Number of Transactions

Manhattan, NY Sale Price per SF Trend

  • Manhattan Avg. Sale Price per SF in 2023$833.93
  • New York Avg. Sale Price per SF in 2023$393.23
Manhattan office space cost in 2023 marked a +2.31% change compared to the previous year. The sale price for office space in Manhattan averaged $833.93 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide New York average office sale price during the same time period was $393.23 per square foot.

2023 Office Sales Volume

  • Manhattan, NY Total Office Sales Volume in 2023 $2.4B
  • Manhattan, NY Total Number of Office Sales Closed in 2023 20
A total of 20 deals closed on the Manhattan office market in 2023, adding up to a yearly sales volume of $2.4B. Notably, the largest transaction on the market saw 724 Fifth Avenue change hands for $425,000,000 on 12/19/2023.

Largest Manhattan Office Sales in 2023

Property name Address Date Price
724 Fifth Avenue 724 5th Avenue 12/19/2023 $425,000,000
720 Fifth Avenue 720 5th Avenue 12/19/2023 $397,395,000
Fifteen Laight 15 Laight Street 2/15/2023 $273,500,000
850 Third Avenue 850 3rd Avenue 3/27/2023 $265,934,200
100-104 Fifth Avenue 100 5th Avenue 11/2/2023 $126,500,000
Data provided by Commercial Edge

Coworking Spaces in New York

2023 Office Construction in Manhattan, NY

  • Manhattan, NY Total SF completed in 2023 6,319,088
  • Manhattan, NY Total SF under construction in 2024 2,972,018

During 2023, 6,319,088 square feet of new office space were delivered across the market. At the close of 2023, the Manhattan office inventory included 8 buildings equal to or larger than 25,000 square feet, which comprised 6,319,088 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 2,972,018 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Manhattan
Office building Address SF Completed
Le Gallerie 132 West 14th Street, 10011 57,478 2024
PENN 2 2 Pennsylvania Plaza, 10001 1,707,000 2023
West End Labs 125 West End Avenue, 10023 400,000 2023
141 East Houston Street 141 East Houston Street, 10002 60,372 2023
50 Hudson Yards 415 10th Avenue, 10001 2,900,000 2022
50 Hudson Yards 50 Hudson Yards, 10001 2,891,194 2022
The Spiral 66 Hudson Boulevard, 10018 2,857,000 2022
425 Park Avenue 425 Park Avenue, 10022 688,461 2022
1245 Broadway 1245 Broadway, 10001 200,000 2022
205 West 28th Street 205 West 28th Street, 10001 105,215 2022

Worth noting among recent office completions on the Manhattan market is Le Gallerie, which is currently the largest new office development in the city, at 57,478 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market knowledge on all Manhattan commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.