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Q3 Manhattan Office Leasing Exceeds Five-Year Average
Manhattan office leasing turned up the momentum in the third quarter of 2024, according to forthcoming reports from CBRE and Avison Young. CBRE reported that Q3 leasing activity of 5.47 million square feet was 8% ahead of the five-year quarterly average, the second consecutive quarter of exceeding the average. Both firms cited year-to-date leasing totals that are ahead of the YTD total in the year-ago period by double-digit percentages: 25.1% according to Avison Young, and 32% according to CBRE.
Large-block leases and renewals drove Q3 leasing activity, led by deals such as Blackstone’s 913,106-square-foot renewal/expansion at 345 Park Ave. and Willkie Farr & Gallagher’s upsized commitment of 313,086 square feet at 787 Seventh Ave. Absorption has been positive in Manhattan office this year, with Q3’s absorption of 3.35 million square feet bringing the YTD total to positive 3.25 million square feet.
“The activity we’re seeing in Manhattan speaks to the current strength of the Manhattan office leasing market,” said Danny Mangru, U.S. office lead, Avison Young Market Intelligence. “Leasing activity is up 25% from a year ago and we’ve witnessed the first quarter of sub-19% availability rate since Q1 2021.”
Pictured: 787 Seventh Ave.
- ◦Lease
