As you may suspect, the Manhattan office market is very challenged right now as office demand remains flat in the face of increasing supply - a welcome sight to firms approaching a lease expiration.
While formal “asking rents” may have dropped slightly, the reality is that leases being signed are in fact transacting at significantly lower rents.
On direct deals, we are seeing rates discounted by more than 20% off the pre-covid numbers; for subleases, some deals are closing upwards of 50% off the original asking price!
If you're currently negotiating with your landlord at your current building, it's worth keeping in mind that they may have a cost basis of ownership that is simply too high for them to transact at a rental rate that meets the current market.
As always, staying up to date on market alternatives nearby can provide you with valuable information when negotiating with your landlord.