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Downtown Office Posts Best Midyear Total Since 2000
Lower Manhattan saw 3.8 million square feet of office leasing in the first six months of 2019, marking the submarket’s best midyear total since 2000, according to the Alliance for Downtown New York. Spurred by relocations into the market, second-quarter leasing activity was 35% above the five-year quarterly average.
Relocations represented about 23% of quarterly leasing activity in Lower Manhattan, according to the Downtown Alliance. Of those relocations, roughly 77% were in the TAMI sector. The four largest relocations were from Midtown South, driven by record-setting rents and lack of quality space.
Additionally, renewal activity was at its highest since Q1 2017, a strong sign for the market as tenants are willing to recommit to Lower Manhattan on a long-term basis. Several large deals at 55 Water St., including EmblemHealth’s 439,080-square-foot renewal, represented the lion’s share of leasing activity in Q2, the Alliance said.
Pictured: 55 Water St.
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