What's a typical lease term in New York?

10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.

How is rent quoted in New York?

In USD/sqft/year. We also publish a USD-normalised view ($102/sqft/yr) for cross-market comparison.

Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year.

Typical lease length: 10 years.
Typical rent-free: 14 months.
Vacancy: 17.4%; trend rising.
Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year.

New York office lease norms

Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year.

TL;DR

Typical lease length: 10 years.
Typical rent-free: 14 months.
Vacancy: 17.4%; trend rising.
Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year.

Structure

Manhattan leases are predominantly modified-gross structures with operating-expense and real-estate-tax escalations over a base year. Free rent (12-18 months on a 10-year term) and fit-out-capex">tenant improvement allowances ($130-$180/sqft for high-spec build-outs) are core economic levers. Personal guarantees are uncommon at institutional tenant scale; Good Guy Guarantees remain standard for smaller suites.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

city	New York
country	United States
region	Americas
classARentLocal	102 USD/sqft/yr
classARentUsd	$102/sqft/yr
vacancy	17.4%
typicalLeaseYears	10
typicalRentFreeMonths	14
submarkets	7
primeYieldPct	5.6%

Frequently asked questions

What's a typical lease term in New York?: 10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in New York?: In USD/sqft/year. We also publish a USD-normalised view ($102/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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