After a file December, Manhattan’s workplace market hit a seasonal slowdown in January.
Manhattan’s leasing exercise totaled nearly 3.7 million sq. ft, down practically 30 p.c from December however a slight improve 12 months over 12 months, in accordance with a brand new Colliers report. The drop was not shocking, as January declines occurred in six of the previous ten years, and December posted the highest monthly leasing volume since 2019, per Colliers.
Midtown nabbed the highest two offers, led by regulation agency Gibson Dunn’s 362,000-square-foot renewal at Irvine Firm’s MetLife Constructing. Landlord BXP scored the second-largest deal, International insurance coverage and funding agency C.V. Starr’s 274,000-square-foot new lease at 343 Madison Avenue, per Colliers. The third-largest was Burlington Shops’ 206,000-square-foot extension and growth at Empire State Realty Belief’s 1400 Broadway in Midtown South.
The supply price tightened to 13.5 p.c, marking the twenty third consecutive month of secure or lowering provide. Sublet provide fell for the sixteenth straight month to 10.7 million sq. ft, a 38 p.c year-over-year lower and the bottom since September 2019. Asking rents averaged $77 per sq. foot, up about 5 p.c 12 months over 12 months, however nonetheless about 3 p.c under March 2020.
Midtown captured 47 p.c of the month’s exercise as availability crept nearly again to March 2020 ranges, when it was solely 7.7 p.c decrease. Midtown South adopted an analogous development, with massive offers serving to push leasing exercise nearly 73 p.c above the ten-year common. Regardless of leasing lagging, even Downtown sublet area tightened to its lowest level since mid-2020, whereas rents rose to ranges not seen since February 2021, per Colliers.
Manhattan was coming off a scorching quarter, posting its strongest outcomes since earlier than the pandemic. Leasing exercise jumped greater than 25 p.c quarter over quarter on the finish of final 12 months.
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Manhattan office leasing roars back to pre-pandemic pace
BXP closing in on 343 Madison anchor tenant
Burlington grows bigger at ESRT’s 1400 Broadway
