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NYC’s Energy-Related Leasing Rises in Response to State’s Transition to Renewables
January 25, 2024 10 Minute Read
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- New York State’s drive to source 70% of its power from renewable sources by 2030 and to have a carbon-free electric grid by 2040 has made a noticeable appearance in New York City’s office leasing market.
- While still modest, a growing number of energy-related firms are setting up bases or expanding their office presence in New York City as they look to capitalize on New York’s nascent green energy transition.
- A record 13 energy-related firms -including a record nine renewable companies – signed leases in 2022, following a strong year in 2021 when 10 energy-related leases – of which seven were renewable firms – were signed. In 2023, eight energy-related firms – all renewable – signed NYC leases.
- Since 2018, 27 private equity and business services firms with a specialized focus on energy-related investment have leased 400,000 sq. ft. in Manhattan with 12 of these firms holding all-renewable portfolios. Energy-related investment leasing hit 165,000 sq. ft. across ten transactions in 2023 against the backdrop of the state’s advancing energy transition programs.