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Office Leasing Reaches 18-Quarter High
New leasing activity reached the highest quarterly level in 18 quarters during Q3, and year-to-date volume reached an historic high of 25.7 million square feet, Cushman & Wakefield reported. Thus far in 2018, there have been 33 new and expansion leases greater than 100,000 square feet, with Pfizer’s 1.2-million-square-foot sale-leaseback at 219 and 235 E. 42nd St. (pictured) representing Q3’s biggest deal.
“If the pace of average quarterly lease activity continues through end of year, Manhattan will finish 2018 with one of the market’s highest annual totals and the single highest year-end total since the peak of 2014,” said Cushman & Wakefield’s Richard Persichetti.
Despite the strong leasing pace, Persichetti noted that vacancy inched up 30 basis points in Q3, as total vacant space reached its highest quarterly level in four years. And for the first time, said the firm’s Louis D’Avanzo, Midtown South asking rents surpassed those of Midtown.
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