Manhattan’s office leasing activity saw a significant increase of 26.7% in the most recent quarter, reaching a total of 8.23 million square feet according to Colliers’ quarterly report. This marks the highest level of leasing since Q3 2022 and is driven in part by Paul, Weiss’ new lease for 766,000 square feet at 1345 Avenue of the Americas.
While annual leasing volume fell short compared to last year’s numbers, it surpassed figures from both 2021 and pre-pandemic levels in 2020 with a total demand reaching up to an impressive figure of27.25 million square feet.
In terms of rental rates, there was a slight decrease with an average asking rent dipping by only -0.6% during Q4of2013to $74 .81/SF.However,DowntownsawanincreaseinrentalrateswhileMidtownandMidtownSouthexperienceddeclines.Availabilityremainedunchangedat17 .9%,matchingtherecord-highfigure.Subletavailabilitytightenedforthe first time in one year totaling20 .35million squaresfeet,butstill higherthanpre-pandemiclevels .
This surgein Manhattan’sofficeleasingactivityisindicativeofthecity’srobustrecoverydespitetheongoingpandemic.WhileConnectCREhasbeen closely monitoring this trend,it is clear that Manhattan continues to bea highly desirable location for businesses lookingto establish their presence or expand their operations.With availability remaining stable and sublet options becoming more limited,the market shows signs offurtherstrengtheningasweenterthe newyear.ThisreportonManhattanOfficeLeasinghighlightsitspromisingoutlookforinvestors,businesses,andcreprofessionals alike.
