Winston Sponsors New York Office Leasing & Asset Management Conference

Winston was a proud sponsor of the New York Office Leasing & Asset Management Conference. The event brought together brokers, tenants, developers, and attorneys to discuss actionable strategies for the evolving New York City commercial landscape as well as leasing trends, asset upgrades, and key submarkets driving demand.

Real Estate partner William Lang moderated the panel, “Office Leasing Trends: Tenant Demands and Implementing Flexibility,” which discussed deals, Class A vs. Class B, and occupier and landlord strategies. Find key takeaways from the discussion below.

Key Takeaways

• Deal Volume Reflects a Market Shifting in Favor of Landlords — Panelists agreed that over the past 6-12 months, leasing activity in New York has continuously increased. Transaction volumes are strongest in Class A+ buildings, but those buildings are now filling up, and tenant demand is spilling to Class A and Class B buildings. Midtown remains the hottest market, but again, as Midtown leases up, other markets, such as Midtown South, downtown, and Hudson Yards, are benefiting.
• Amenities are Still in Demand by Tenants — Tenants are prioritizing buildings with modern amenities, sustainability features, and hospitality-inspired design, leading to higher leasing velocity and premium pricing. Owners of buildings without amenities are looking to renovate to include amenity space to stay competitive.
• Residential Conversions are Helping to Drive the Landlord Market — As noted above, demand for lower-tier Class A and Class B buildings is increasing as the cost and availability of the top-tier spaces are making them scarce. Another issue driving the market from the other end is that some of the Class B buildings are being converted to residential or mixed-use, taking available office space off the market. Such conversions were traditionally limited to downtown office buildings but are now occurring along Third Avenue and in other uptown locations.
• Tenant Sectors Remain Consistent with AI Tenancy Increasing — Tenants occupying space in New York City remain similar to what they have been historically—financial services, legal, hedge funds, and other investment fund tenants remain the backbone of leasing in the city. In addition, tech and AI groups are leasing more space, which is helping drive the market.
• Partnership is Key to Proactive Asset Management — Fostering partnerships with tenants and brokers is a great way for landlords to respond to current market demands. Proactive asset management—including tenant fit-outs and enhanced amenities—was cited as essential for driving retention and long-term profitability.