Manhattan Office Leasing Keeps Pace with Historical Average

Manhattan office leasing volume for August was down by nearly one-third from July but up 3.5% year-over-year and in line with the 10-year rolling monthly leasing average of 2.66 million square feet, Colliers said Tuesday. A key factor in the difference between July and August was July’s massive Blackstone expansion to 1.06 million square feet at 345 Park Ave.; August didn’t see any leasing deals of comparable scale.

“Instead of a typical quiet August in the Manhattan office market, tenant demand kept on track with the historical average and continued to outpace supply,” said Franklin Wallach, executive managing director of research & business development for Colliers in New York. “Additionally, stronger occupier demand along with more planned conversions are still chipping away at the excess office supply. Sublet availability was at its lowest in more than two years while the overall office market witnessed more than two million square feet of positive absorption in the past year.”

Separately, the Real Estate Board of New York reported on Tuesday that July office visitation rates reached 72% of 2019 levels, or 78% if the Fourth of July week is subtracted. “Newly constructed or renovated properties, as well as some Class B buildings with prime access to transit, continued to outperform,” said Keith DeCoster, VP of research at REBNY.

Pictured: 590 Madison Ave., where LVMH signed a 108,233-square-foot new lease in August.