New York & Tri-State + Office | August 20, 2018

Cozen O'Connor has added Scott J. Pashman as a member to its real estate practice, based at the law firm's 3 World Trade Center offices

Preleasing Gives Boost to Manhattan Office Market

Manhattan office tenants’ hunger for new product is being fed by large preleasing commitments. That in turn is helping the absorption rate for that new product, according to Avison Young’s newly issued midyear U.S. office report.

The report noted that as of June 30, a total of 10.6 million square feet of office was under construction across Manhattan and set for 2019 and 2020 completions, with 47% preleased by a diverse tenant base. “Completions to date have followed the same trend of preleasing,” the report stated.

Although the under-construction 3 World Trade Center (pictured) bumped up Manhattan’s vacancy rate a year ago, the 2.8-million-square-foot Lower Manhattan tower was more than 40% preleased when it delivered in the second quarter, with McKinsey & Co. executing an early commitment. “It is this kind of preleasing activity that will continue to benefit the overall Manhattan leasing market,” according to Avison Young.

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About Paul Bubny

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).

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