Manhattan Office Leasing Has Best Month Since Pre-Pandemic
At 3.41 million square feet, Manhattan office leasing volume in August increased by 7.8% over July and by 39.5% year-over-year. This was Manhattan’s strongest monthly leasing total since January 2020, reported Colliers’ Franklin Wallach, executive managing director, research & business development in New York.
CBRE reported 2.93 million square feet of leasing while characterizing August as Manhattan office’s best month since December 2019.
“The strong month of August highlighted the continued improvement of 2022 over 2021 in terms of leasing activity, with year-to-date leasing reaching 16.6 million square feet, a 71% increase from 2021,” said CBRE’s Paul Myers.
Among the Colliers report’s key findings are the following:
Downtown’s leasing volume in August totaled 0.51 million square feet. This was Lower Manhattan’s strongest month of leasing since July 2021.
The month’s two largest transactions (KPMG and Freshfields) were relocations from Midtown to new office inventory outside of the Midtown market, with KPMG consolidating from three Midtown locations into 456,000 square feet at Two Manhattan West.
Manhattan’s availability rate decreased by 0.3 percentage points to 16.7%, the lowest rate since April 2021. Midtown availabilities dropped by 0.4 points to 15.6%, the lowest since December 2020.
Manhattan’s average asking rent decreased by 0.4% to $75.11 per square foot.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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