In recent years, the financial services and the technology, advertising, media and information (TAMI) sectors have been leading pillars of demand in New York City. TAMI was the largest contributor of demand between 2018 and 2020, however, in 2021 it was superseded by financial services, which continued to lead all industry types in leasing activity through 2023. While most sectors have yet to rebound to pre-pandemic activity levels, the legal sector has clearly emerged as the second most active. This year leasing activity was the highest it has been in a decade. The financial services and legal sectors, combined, accounted for 51.3% of total annual leasing in 2023, up from 33.7% pre-pandemic. While overall leasing is down in 2023, the positive trend reflects their relative resilience amid current economic uncertainties that have impacted many sectors.
In 2023, financial services tenants committed to 140 leases totaling over 5.5 msf, nearly half of the leases committed in the Plaza District. Flight to quality has been a factor for many, with over 70% of leases occurring in newly developed or renovated assets. During the same period, legal sector tenants executed 45 transactions, totaling over 3.6 msf, predominantly in the Grand Central and Sixth Avenue/Rock Center submarkets. The largest contributors to the strong annual leasing total included Paul Weiss, Davis Polk &