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Smaller Deals Drive Downtown’s Q3 Office Leasing Velocity
Deals for spaces less than 100,000 square feet accounted for approximately 70% of third-quarter leasing activity in Lower Manhattan, the Alliance for Downtown New York reported. Small-lease deals of less than 25,000 square feet represented 30% of all new activity in Q3.
The Downtown Alliance reported that strong office leasing momentum in Lower Manhattan continued into Q3 with 1.81 million square feet of new deals inked. Bolstered by relocations into the market, leasing activity was 38% above the five-year quarterly average.
With 5.61 million square feet leased so far this year, downtown has experienced its highest year-to-date leasing total since 2000, the Alliance reported, citing CBRE data. Leasing during the past three quarters has already surpassed 2018’s year-end total.
Relocations represented 37% of quarterly leasing activity in Lower Manhattan. Of those relocations, more than half were TAMI (Technology, Advertising, Media and Information) tenants, according to the report.
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