In February 2024, Manhattan’s office leasing volume saw a significant increase of 2.1% from January and an impressive 75.9% year-over-year growth, according to the latest Colliers’ Manhattan Office Snapshot report. This is in line with the five-year rolling monthly average but falls below the pre-pandemic levels seen in 2019.
Notable leases during this period include Michael Kors’ renewal of a large space spanning over 203,000 square feet, Burlington’s extension of their lease for another 171,000 square feet and Betterment’s sublease for an additional area measuring at least113,000 square feet. However,the availability rate in Manhattan has reached a record-high at18.2%, with negative absorption totaling to approximately1.43 million square feet.
Furthermore,the net sublet availability also experienced its sharpest gain since February2023 by increasing by0 .56 million squarefeet.The average asking rent decreased slightly by0 .2 %to $74 .47/SF , marking four consecutive months of decline and remaining6 .3 %belowthe March2020average rental rates.
This surgein office leasing activityis indicativeofa positive trendforthe commercial real estate marketinManhattanand signals potential opportunitiesfor businesses lookingto secure premiumoffice spacesinthis bustlingcity.However,it should be noted that these figures do not take into account any data related to Connect LA or Connect Texas regions.
