Q2 Manhattan Office Leasing Driven by New Construction 

Manhattan office leasing volume declined slightly in the second quarter compared to Q1, Newmark and Colliers reported. However, the year-over-year picture is brighter, with volume in the first half of 2022 up 64.2% from the year-ago period, according to Colliers, and up 33.1% over Q2 2021, Newmark reported. 

Newmark reported that Q2 leasing activity was spurred by large leases in new construction, with the quarter’s largest transaction signed by HSBC Bank for 263,762 square feet at 66 Hudson Blvd.  

“This volume of activity in Class A product is further evidence of the flight to quality seen in the market,” according to Newmark’s Jonathan Mazur and Stephanie Jennings. Similarly, Franklin Wallach, executive managing director of research & business development | New York at Colliers, observed, “The first half of 2022 demonstrated ever-increasing tenant demand, especially in Class A, upgraded or newer office inventory.” 

He added, though, “Manhattan’s availability rate still poses a barrier to a true recovery with direct and sublet inventory continuing to increase in some corridors, creating value-play opportunities for tenants.”