“Decrease in Manhattan Office Leasing by 33% Year-to-Date”

"Decrease in Manhattan Office Leasing by 33% Year-to-Date"

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.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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