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Manhattan Office Market Rebounds in Q2
The office market in Manhattan experienced a rebound in leasing activity to 8.7 million square feet, following a sluggish Q1, according to a Q2 office market report from Savills. Despite the increase, leasing levels remain below the pre-pandemic Q2 average.
Key insights from the report include a divergence in availability between Class A and Class B/C office spaces. Class A availability declined at four times the overall rate, with expectations of further decreases, while Class B and C availability increased, surpassing the 20% threshold.
Midtown Class A asking rents saw a 2.6% increase after two consecutive quarters of decline, driven by strong demand for high-end, well-located office spaces. Additionally, coworking firms made a notable return to the market, accounting for 3.7% of Q2 leasing volume, a significant uptick from almost no activity in 2023.
- ◦Lease
