New York City Office Rental Space Attracts Green Energy Firms

Explore the influx of green energy companies into New York City office space and their growth potential.

New York City is at the forefront of a new trend, with the state committing over $55 billion to source 70% of its power from renewable energy by 2030 and achieve a zero-emission electric sector by 2040. According to the CBRE Brief, "NYC's Energy-Related Leasing Rises in Response to State's Transition to Renewables", green energy firms have been flocking to the city or expanding their operations to capitalize on the green energy transition, as well as the city's access to talent and improved investment climate.

In 2022, a record 13 energy-related firms, including nine renewable companies, signed leases in New York City. This trend continued into 2023, with eight energy-related firms, all renewable, signing leases in the city. CBRE played a key role as the tenant representative on several lease transactions completed last year with firms involved in the state's renewables transition.

One notable lease transaction involved Transmission Developers, a Blackstone portfolio company that is developing a fully buried transmission line from the U.S.-Canadian border to New York City. Additionally, investment firms that provide capital to renewable energy providers for building renewable energy infrastructure across the state and globally 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 10 transactions in 2023, reflecting the state's advancing energy transition programs.

CBRE's involvement in these lease transactions, including Stonepeak's 77,000 sq. ft. lease in December 2023, underscores the growing interest and activity in green energy leasing in New York City.

New York City's commitment to renewable energy and the state's transition to a zero-emission electric sector have led to a surge in green energy leasing in the city. With a record number of energy-related firms, particularly renewable companies, signing leases, New York City is poised to become a hub for green energy innovation and investment.