The office market in Manhattan has rebounded in Q2, with leasing activity reaching 8.7 million square feet, according to a report from Savills. Despite the increase, leasing levels are still below pre-pandemic averages.
Key insights from the report reveal a divergence in availability between Class A and Class B/C office spaces. While Class A availability is expected to decrease further after declining at four times the overall rate, Class B and C availability has surpassed 20%.
In Midtown, asking rents for high-end and well-located Class A spaces saw a 2.6% increase after two consecutive quarters of decline due to strong demand. Additionally, coworking firms have made a notable return to the market with their share of Q2 leasing volume increasing by almost no activity since 2023.
This latest update on Manhattan’s office market shows promising signs of recovery despite ongoing challenges caused by the pandemic.
