The Manhattan workplace market pumped the brakes in November.
Leasing exercise dipped practically 18 % from October, regardless of a handful of massive offers. Tenants inked offers for two.99 million sq. ft, down about 12 % yr over yr, based on a brand new Colliers report. Nonetheless, demand exceeded the borough’s 10-year month-to-month common and pushed year-to-date exercise to 36.7 million sq. ft, already forward of final yr’s complete.
If December holds tempo, Manhattan might prime 40 million sq. ft of leasing for the primary time since 2019.
A handful of headline-grabbing offers anchored the month, led by Millennium Administration’s 438,000-square-foot renewal at BXP’s 399 Park Avenue. That was adopted by Rippling’s 133,000-square-foot deal at Vornado’s 330 West thirty fourth Avenue and two 125,000-plus-square-foot leases at Vornado’s Penn 2 by Robinhood and Dick’s Sporting Items.
Even with the slowdown, availability dipped to 14.2 %, its lowest degree since late 2020, per Colliers. Internet absorption remained optimistic at simply over half one million sq. ft, whereas sublet provide continued its lengthy unwind, falling for the 14th straight month to 11.8 million sq. ft, now beneath pre-pandemic ranges.
Midtown led the borough with 1.4 million sq. ft leased, although quantity slipped 9 % from October and practically 30 % yr over yr. Availability within the submarket fell barely to 12.8 % from 13 %, helped by a scarcity of recent house coming in the marketplace and falling sublet stock. Common asking rents to $82.29 per sq. foot, about 4 % decrease than March 2020.
Midtown South recorded 1.23 million sq. ft of leasing, pushed by tech and retail tenants. Downtown leasing tumbled to 356,000 sq. ft, half of October’s complete, however greater than double what it was final yr, per Colliers. Availability ticked as much as 17.6 % as demand dropped and 205,000 sq. ft of sublet house hit the market at 1 New York Plaza.
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