In August 2023, Manhattan’s office leasing volume reached 2.54 million square feet., marking four consecutive months of growth, notably boosted by Davis Polk & Wardwell’s 700,000 square feet extension and expansion at 450 Lexington Avenue. According to August office snapshot from Colliers. 

This is the strongest monthly performance since January. However, leasing activity will need to surge in the coming months to surpass 2022’s full-year leasing volume. Manhattan’s overall availability rate remained steady, albeit at record-high rates in Manhattan and Midtown South, while Midtown tightened and Downtown’s rate increased.  

Although Manhattan’s sublet availability hit its lowest point since January, the total sublet inventory grew significantly year-over-year, up over 76.4% since March 2020. Midtown South saw its average asking rent reach a new record high due to a premium-priced sublet block.