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Q1 Breaks Four-Quarter Streak of Gains in Manhattan Office Leasing
After four consecutive quarterly increases, Manhattan leasing volume decreased by 11.6% in the first quarter, according to Colliers’ most recent quarterly report.1However, a decrease in leasing activity between Q4 and Q1 is not unheard of, and in fact seven of the past 10 Q4-Q1 periods have seen declines.
At 7.62 million square feet–the second strongest quarter of activity during the pandemic –Q1 2022 leasing volume was 67.5% higher year over year. Yet, Q1 2022 demand was 7.1% below Manhattan’s five-year rolling average.
The first quarter demonstrated the early but uneven signs of recovery in Manhattan,” said Franklin Wallach, executive managing director of research & business development | New York at Colliers. “Overall, leasing activity was vastly stronger compared to early-2021. But tenant-favored market conditions will remain until demand reaches the inflection point being able to absorb the nearly 40 million square feet of space added over the past two years.”
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