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Office Lease Renewals Show Strength in Otherwise Quiet Q1 for Manhattan
The renewal rate for Manhattan office leases was one bright spot in the first quarter of 2023, according to CBRE figures. Renewal activity reached 1.49 million square feet in Q1, up 72% from the year-ago period. Leading the way was Midtown South, where activity rose 144% from Q1 2022.
Otherwise, the leasing picture was cloudier. Q1 activity totaled 3.85 million square feet, 35% behind the five-year quarterly average of 5.89 million square feet and 32% behind Q1 2022 totals.
The availability rate for Manhattan office space rose 50 basis points from last quarter to 19.7% and was up 20 bps from a year ago—here again, led by Midtown South with a 120-bp year-over-year increase. Sublease availability rose 30 bps from Q4. Net absorption in Q1 was negative 1.86 million square feet.
At $77.18 per square foot, the average asking rent was essentially flat quarter-over-quarter and year-over-year, according to CBRE.
- ◦Lease
