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Manhattan Office Leasing Volume Sinks to Two-Year Low
At 1.31 million square feet, Manhattan’s February 2023 office leasing activity was less than one-third the volume recorded in January, Colliers reported. Unlike January, where 54% of leasing volume was driven by five separate transactions of 250,000-plus square feet, February’s largest transaction was only 65,000 square feet.
This was also Manhattan’s lowest month of leasing since April 2021. Additionally, February’s leasing velocity was well below the monthly averages for 2022 and 2021.
Coinciding with the drop in demand, Manhattan’s availability rate grew by 0.3 percentage points in February to 17.2%. The available supply grew by 72.3% since March 2020 to 92.8 million square feet, only 1% below the record high of 93.73 million square feet a year ago.
The average asking rent decreased by 0.2% during the month to $74.93 per square foot but was up 3.1% since the pandemic low of $72.68 per square foot in August 2021.
- ◦Lease
