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Leasing Velocity Dips in October

NEW YORK CITY-Following a busy third quarter, Midtown volume came in under the one-million-square-foot mark for the first time since May.

By Paul Bubny | Updated on November 13, 2009

NEW YORK CITY-Office leasing activity throughout Manhattan last month was solid rather than spectacular after a busy third quarter, according to market reports. In Midtown, for example, leases totaled 910,000 square feet in October, according to CB Richard Ellis, marking the first month since May that volume failed to reach the one-million-square-foot mark. Sixty-two percent of the activity in Midtown for October was in smaller deals of 25,000 square feet or less.

Year-to-date leasing activity in Midtown totaled 8.84 million square feet, off 17% from the same period in 2008, according to CBRE. A similar year-over-year percentage decline was seen in Downtown, while the month’s volume of 250,000 was 38% less than the five-year monthly average of 400,000 square feet.

Midtown South’s 270,000 square feet of leasing in October was on pace with the five-year monthly average of 280,000 square feet, says CBRE. Nearly half the month’s velocity came from a single deal: STV’s 116,944-square-foot renewal and expansion at 225/233 Park Ave. South. However, the YTD volume of 1.68 million square feet was off 29% from the 2.37 million square feet leased in the first 10 months of ’08.

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