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YTD Midtown Leasing Reaches Third Highest Level on Record
Midtown office leasing for the first half of 2018 totaled 10.1 million square feet, the third highest year-to-date tally on record, according to Cushman & Wakefield. However, despite strong activity in the second quarter, the vacancy rate slipped just 10 basis points from Q1 to 9.2%, as the quarter’s top three leases were either renewals or occurred in new development.
The largest of these was Pfizer’s commitment to nearly 800,000 square feet at Tishman Speyer’s new Spiral development (pictured) at 66 Hudson Blvd. in the Hudson Yards district on the Far West Side. Driven in part by eight leases of greater than 100,000 square feet during Q2, Class A vacancy fell 30 bps to its lowest rate since Q4 2015, with both direct and sublease available space decreasing.
Conversely, Class B office vacancy increased 30 bps in Q2 to 9.9%, due to large sublease space additions at 330 West 34th Street and 1440 Broadway.
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