Transwestern’s Q3 report on the Manhattan office market reveals a mix of trends. Leasing activity decreased to 5.0 million square feet in the quarter, with notable deals such as DavisPolk’s 708,000-square-foot renewal and expansion. However, net absorption was strong at 1.9 million square feet – the highest in almost five years.
According to Corrie Slewett, Transwestern research manager: “We observed an increase in office usage during this quarter due to many large employers implementing policies for employees to return to work in person; however, we will need a sustained rise in demand that can offset high availability levels.”
Overall availability dropped slightly to 18.7%, while sublet availability also decreased significantly by removing over two million square feet of sublease space from the market. Average asking rents rose by 1% compared with Q2 and reached $74.54 per square foot – which is its highest point since late last year.
Office construction remained low as uncertainty continues within the market; instead there has been more focus on renovations and reconstructions particularly within Class B buildings.
The article “Manhattan Office Shows Mixed Trends In Q3” originally appeared on Connect CRE.
