In the third quarter of 2023, Manhattan’s office market experienced cautious leasing activity, with a total of 4.30 million square feet leased. This was below the five-year average of 5.54 million square feet and reflected a decrease in year-to-date leasing activity by 33%, according to CBRE’s Q3 2023 Manhattan Office Figures.
Renewals were prevalent during this period, accounting for a total of 1.66 million square feet leased. The average asking rent was $76.38 per square foot, showing a slight decline from the previous quarter.
Midtown saw positive net absorption and a decrease in availability rate to18.l%. However, leasing activity remained lower than the five-year average by16%. The average asking rent stayed at $82 .68 per square foot.
Meanwhile,Midtown South struggled with significantly lower leasing activity compared to its five-yearaverage.The area also had anaverageaskingrentof$81 .73persquarefoot.DowntownManhattanalsoexperiencedaslowdowninleasingactivitywitha37%decreasefromthefiveyearaveragethatresultedinanaverageaskingrentof$57 .19persquarefoot .
Overall,theManhattanofficeleasingscenarioshowedadropof33%YTDandreflectsthecautiousapproachtakenbybusinessesduringthisperiodfortheirrealestateneeds.
