NEW YORK CITY-Economic uncertainty, the European debt crisis and high unemployment caused tenants to take a back seat in the first quarter, but sustained yet modest growth from professional service firms helped the Manhattan office market stay afloat. At a media briefing held by CBRE on Tuesday morning, the brokerage said overall leasing activity for Q1 2012 was 4.65 million square feet, down from last year’s 6.21 square feet – a sign that the market has slowed, but hasn’t tapered off.

Michael Geoghegan, vice chairman of consulting at CBRE, said many are taking a “wait-and-see” approach before signing a deal or moving to a new space due to the volatility in the marketplace. “In any case, we saw that tenants took a pause,” he said.

New CBRE data shows negative net absorption of nearly three million square feet throughout Q1, but at the same time, media, advertising, legal and technology firms have all shown growth. Average asking rents in Manhattan increased over 9% to $54.53 per square foot from last year’s $49.93, and the availability rate remained relatively flat at 11.1%.