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.”
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).