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Manhattan Office Shows Mixed Trends in Q3
Transwestern’s Q3 report on the Manhattan office market reveals mixed trends. Leasing activity decreased to 5.0 million square feet in the quarter, with notable deals like DavisPolk’s 708,000-square-foot renewal and expansion. However, net absorption was a robust 1.9 million square feet, the highest in nearly five years.
“We saw an increase in office usage during the quarter as many large employers rolled out in-person attendance policies, though we’ll need a larger and more sustained increase in demand to offset availability, which remains very high,” said Corrie Slewett, Transwestern research manager.
Overall availability declined to 18.7%, with sublet availability also dropping to 4.4% as over 2 million square feet of sublease space was removed. Average asking rents increased by 1% over Q2 to reach $74.54 per square foot, the highest since late 2020. Office construction remained low, reflecting ongoing uncertainty in the market, with a focus on renovations and reconstructions, particularly in Class B buildings.
- ◦Economy
