Positive Absorption Erodes Availability Rate for Manhattan Office
Overall positive absorption in Manhattan’s office leasing market took the availability rate down 30 basis points to 19.2% in the second quarter, CBRE said Tuesday. With net absorption of 976,000 square feet in Q2, Manhattan recorded 5.94 million square feet of leasing activity during the quarter, 4% below the five-year quarterly average.
“The flight-to-quality trend played a leading role in leasing activity, particularly in Midtown, as several tenants committed to the newest, best-in-class office space with amenities that appeal to their employees,” said Nicole LaRusso, senior director of research and analysis, U.S. north region.
Faring best of the three submarkets was Midtown, which saw 4.24 million square feet of leasing, up 25% from Q1 and 11% above the five-year average. Midtown South was 13% behind the five-year average, although net absorption was positive. Downtown posted negative absorption of 365,000 square feet and its availability rate rose to 22.6%.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).