NY office concessions increase, signalling market strength: analysts

PROPERTY landlords have roughly doubled the concessions they grant in New York office leases over the past decade, a sign analysts say is one of strength, not weakness, as tenants demand swankier workplaces to attract and retain employees.

Data from brokerage Colliers International shows a 17 per cent surge so far this year in landlord allowances for tenants to furnish and build out an office, indicating a more competitive market as employment booms in Manhattan.

Rising concessions typically herald a downturn. Yet, the allowance increase, on top of an 8 per cent jump through June in the number of free months rent landlords offer, points to the city's robust real estate market for office space.