CBRE: Manhattan Tenants Took A Pause in Q1

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.