Real Estate Board of New York Inc.
09/30/2024 | Press release | Distributed by Public on 09/30/2024 13:14
August Manhattan Office Visitations Tick Up 2 Percentage Points in Latest REBNY Report
Average visitations for August 2024 were 74% of the 2019 baseline
Year-over-year, average visitation rate in August is up ten percentage points
NEW YORK, NY -The Real Estate Board of New York (REBNY) today released its latest monthly analysis of Placer.ai location data in 350 Manhattan office buildings for August. This report tracks mobile data of office tenants and their employees, and, where applicable, also reflects the presence of office visitors and retail customers and employees within those buildings.
The full report can be found here.
According to the report, Manhattan office buildings in August 2024 had an average visitation rate of 74% of 2019 levels, up two percentage points from the previous month. Visitations averaged 79% in Midtown and 92% in the highest quality Class A+ properties for the first two weeks of August, but only 71% across the city during the final two weeks of the month, likely due to many workers taking summer vacations. Year-over-year, the overall average visitation rate in August is up ten percentage points.
Following trends from prior months, A+ property visitation rates were much higher than A-/B/C buildings, averaging 87% across submarkets in August. This is an uptick from 86% in July and 79% in August 2023. Class A/A- visitations totaled 69% compared to 62% in August 2023, while B/C Buildings totaled 72% compared to 62% in August 2023.
Submarkets with a higher number of properties clustered around transit continue to display higher average visitation rates. This was reflected in some of the differences at the submarket level. In August 2024 Midtown South posted the highest visitation rate at 76%, just above 74% in Midtown and well above 62% in Downtown. All of these visitation rates are above those from a year ago.
"Manhattan's office sector continues to maintain visitation rates that are among the highest nationally and visitation is up consistently compared to a year ago," said Keith DeCoster, Vice President of Research at the Real Estate Board of New York. "That said, with the exception of A+ buildings, visitation is still 20% to 30% below its pre-Covid levels - post-Labor Day numbers will provide key insight regarding whether the market is settling into a new normal of if visitation pushes materially higher."
The buildings analyzed in these reports include a representative sample of various types of office buildings. Buildings that were not completed by 2019 are not factored in this report or in the 2023 average visitation rates.
The report analyzes mobile data provided by Placer.ai from geo-fenced buildings, including multiple phones carried by individual visitors. This has no impact on building visitation rates, as the same possibility of individuals carrying multiple phones exists in 2023 and the 2019 baseline.
Findings in these reports include visitation data with a minimum dwell time of seven minutes. In turn, data may include some visitors other than office employees such as building maintenance staff, visitors attending company meetings, as well as visitors to retail at the base of an office building. This visitation rate captures the broader economic impact and use of office buildings.
For more information about REBNY research reports, visit //go.rebny.com/Reports.
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ABOUT THE REAL ESTATE BOARD OF NEW YORK
The Real Estate Board of New York (REBNY) is the City's leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate. REBNY conducts research on various civic matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes, and other city, state, and federal legislation. REBNY regularly publishes market data, policy reports, and broker surveys. In addition, REBNY provides for its members: informational, technical, and technological resources; networking and charitable service opportunities; qualifying and continuing education courses; professional education programs, seminars, and designations; career-changing awards; legal advice; and a wide range of additional member benefits. For more information, please visit www.rebny.com.
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