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Manhattan Office Leasing Drops 33% YTD
Manhattan’s office market showed cautious leasing activity in Q3 2023, with 4.30 million square feet leased, below the five-year average of 5.54 million square feet. Despite a 10-basis-point drop in the availability rate to 19.8%, year-to-date leasing activity was down 33% from the previous year, according to CBRE’s Q3 2023 Manhattan Office Figures.
Renewals were prominent, totaling 1.66 million square feet. The average asking rent was $76.38 per square foot, down 1% from the previous quarter. In Midtown, the availability rate declined to 18.1%, with positive net absorption, but leasing activity was 16% below the five-year average. The average asking rent remained at $82.68 per square foot.
Midtown South struggled, with leasing activity significantly below the five-year average. The average asking rent was $81.73 per square foot. Downtown Manhattan also saw a leasing slowdown, with activity 37% below the five-year average. The average asking rent was $57.19 per square foot.
