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Co-working Tenants Triple Their Share of Manhattan Leasing
Co-working tenants accounted for 12% of the nearly 25 million square feet of Manhattan office leases in the year’s first three quarters, according to preliminary third-quarter data from Avison Young. That compares to 4% of the 23.8 million square feet leased in the year-ago period.
“This stronger leasing activity reflects that co-working operators are now securing leases in Class A buildings as well as Class B and C properties, a trend we saw across all markets in the third quarter,” said Mitti Liebersohn, president and managing director of Avison Young’s New York City operations.
For Midtown in particular, co-working/flexible office space tenants located around major transit hubs accounted for three of Q3’s eight transactions over 100,000 square feet. Largest of these was WeWork’s 258,344-square-foot deal at 21 Penn Plaza.
In Midtown South, co-working accounted for 45% of Q3’s leasing volume, nearly twice as big a share as the TAMI sector.
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