Record number of $100-plus leases signed in 2023

NEW YORK, Jan. 2, 2024 – JLL has released its 2023 Year-End Recap, which revealed that office tenants signed a record high 192 $100-plus starting rent leases representing 5.6 million square feet of space in Manhattan throughout the year.

The historic Seagram Building at 375 Park Ave. saw 12 triple digit deals – the most of any Manhattan building during the year - while the brand new One Vanderbilt secured the highest rent of 2023 with its $247 per square foot lease to AIMCO signed in June.

Despite fragility in the broader market, top tier leasing was extremely strong, representing 26% of the 21.7 million square feet of total leasing activity across Manhattan during the year. The JLL data shows tenants continued to gravitate to new construction and heavily renovated assets, and the financial services industry led the charge with 80% of all $100+ leasing – specifically hedge funds and private equity contributing to 44% of the top deals.

Midtown’s Plaza District saw the most top dollar leasing volume - thanks in large part to the Seagram Building - followed by Hudson Yards / Manhattan West assets.

The two largest transactions of the year were for entire-building occupancies. Vornado secured the largest top-dollar transaction in 2023 with a 585,000-square-foot lease at 350 Park Ave., followed by Related’s 432,000-square-foot full-building transaction at 20 Hudson Yards.

There were 80 buildings in the $100+ club in 2023, breaking last year’s record of 77 buildings and including a number of first-time entrants. Midtown South had several new members including 50 Ninth Ave. and 555 Greenwich St. Midtown’s first timers included 330 Madison Ave. and 22 Vanderbilt (formerly known as 335 Madison Ave.).

The landlords who attracted the most premium rent paying tenants were Vornado Realty (1.2M s/f 14 deals); The Related Companies (940,000 square feet / 15 deals); SL Green Realty (800,000 square feet / 21 deals); Tishman Speyer (472,000 square feet / nine deals) and Boston Properties (419,000 square feet / 17 deals).

Perennial top-performer, the RFR-owned Seagram Building | 375 Park Ave. secured the largest number of $100-plus transactions with 12 in total, comprising 120,000 square feet. Of these, two-thirds of the transactions were renewals, affirming that once in occupancy, tenants seek to remain in this iconic Midtown asset. Tied for second place were 55 Hudson Yards, 66 Hudson Boulevard, and 767 Fifth Ave. (seven deals each).

Whereas 2022 saw many tenants focused on right-sizing their operations post-COVID, 2023 was all about growth and expansion among the larger occupants. In every instance in the 10 largest top-tier transactions, the tenants all expanded and grew appreciably in their new commitments.

The Year-End Recap is produced by JLL Vice Chairman Cynthia Wasserberger with Senior Vice President Carlee Palmer and Associate Margaux Kelleher.

“With triple-digit deals accounting for more than one quarter of overall leasing activity across Manhattan in the last year, it is apparent that flight to quality continues to drive the market,” said Wasserberger. “As we put COVID in the rear-view mirror, tenants are also more focused on growth and expansion, a trend we hope to see continue in 2024.”

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