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Manhattan Office Leasing Posts Strongest Month Since Pre-Pandemic
The rise of the delta variant notwithstanding, Manhattan office leasing activity increased for the fourth consecutive month, with 2.45 million square feet leased, Colliers’ Franklin Wallach reported. This was the strongest month of leasing volume since January 2020.
Along those lines, the Manhattan availability rate decreased by 0.2 percentage points to 16.9%, the largest monthly decrease since June 2019, according to Wallach, senior managing director of research.
With 1.46 million square feet in deals, Midtown recorded the highest monthly level of leasing volume since July 2020. Seven of the 10 largest leases in August were in Midtown.
However, despite the tightening supply in August, Manhattan’s overall availability has grown by 68.5% since March 2020 to a total of 90.74 million square feet. August saw Manhattan office rents remaining mainly stable, decreasing by $0.04 per square foot to $72.68 per square foot. Nonetheless, this was the lowest asking rent since 2017.
