Despite economic pressures, Manhattan\u2019s office market<\/a> showed resilience in late 2024. Specifically, leasing activity rebounded in the fourth quarter, driven by finance firms hungry for top-tier space in prime locations like Park Avenue. Meanwhile, office vacancies in Manhattan hovered at 16.5% as of November \u2014 below the national average of 19.4%, according to a recent office report<\/a> from CommercialCafe.<\/p>\n Following a brief stint in which San Francisco claimed the top spot in October, Manhattan regained its position as the most expensive office market nationwide with asking rents averaging $68.87 per square foot \u2014 more than double the national average.<\/p>\n In particular, finance firms (which have largely returned to in-person work) were behind some of the year\u2019s most significant leases. For instance, Bloomberg\u2019s renewal and expansion at 919 Third Ave. totaled 925,000 square feet and ranked as one of the largest leases of the year.<\/p>\n Likewise, Citadel\u2019s deal for 500,000 square feet at 660 Fifth Ave. capped a strong quarter and the trophy tower, owned by Brookfield Properties, demonstrates the potential of repositioning efforts. Following a $400 million renovation in 2022, the 1.4-million-square-foot property now features a modern lobby and 42,000 square feet of tenant-exclusive terraces. Citadel\u2019s lease spans 20 floors of the 39-story building.<\/p>\n \u201cWe are proud to welcome Citadel to their new office at 660 Fifth Avenue,\u201d said Callie Haines, Brookfield\u2019s executive vice president and head of northeast region office properties. \u201cThis landmark lease underscores the success of our extensive redevelopment of 660 Fifth Avenue, transforming it into a premier, cutting-edge and sustainable workplace in the heart of Midtown Manhattan.\u201d<\/p>\n Citadel\u2019s move is also in tune with its broader national expansion. Beyond Manhattan, the Ken Griffin-owned hedge fund firm has been increasing its presence in Miami: It signed on for 130,000 square feet at 830 Brickell last year and Griffin is developing a 1.3-million-square-foot tower.<\/p>\n On the transactions side, Manhattan reclaimed its position as the country\u2019s market leader in office transaction volume with more than $3.8 billion in deals through November. Here again, the finance sector played a significant role, including JPMorgan Chase\u2019s $320 million purchase of 250 Park Ave. in July that\u2019s next door to its future headquarters at 270 Park Ave.<\/p>\n Still, many transactions highlighted ongoing challenges in the market with properties trading at steep discounts. Namely, Morgan Stanley\u2019s sale of 2 Park Ave. for $360 million represented a 31% loss from the $519.4 million it paid in 2007. Similarly, UBS offloaded its Times Square property at 135 W. 50th St. during the summer of 2024 for just $8.5 million \u2014 a fraction of its original purchase price.<\/p>\n\n