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Manhattan Office Sector Rebounds, Yet Headwinds Remain
Office market leasing in Manhattan is showing clear signs of breaking out of the pandemic shutdown, according to reports from Colliers and Transwestern. Volume increased in July for the third consecutive month and was the strongest one-month tally in a year, reported Franklin Wallach, senior managing director, research at Colliers.
July followed a second quarter in which approximately one dozen leases of greater than 50,000 square feet were signed, while sublease levels eased considerably, Transwestern reported. “The overall uptick in market activity, particularly with the large leases signed during the quarter, is fueling the return of Manhattan’s office market,” said Rory Murphy, partner at Transwestern.
However, both firms cautioned that the market isn’t back to pre-pandemic levels yet. Transwestern reported Q2’s uptick in availability and a decline in asking rents, while Wallach noted that July saw an increase in sublet space following three consecutive months of sublet supply decreasing.
Pictured: 787 Eleventh Ave., where Mount Sinai’s Icahn School of Medicine signed one of the largest Manhattan leases year to date.
- ◦Lease
