Manhattan leasing activity totaled just 2.57 million square feet in Q3 2020, with Midtown registering 2.01 million square feet, Downtown 455,000 square feet and Midtown South 104,000 square feet, according to CBRE.
One characteristic of this pandemic-driven market has been the reluctance of tenants to make long-term decisions, according to Nicole LaRusso, director of Research and Analysis for CBRE Tri-State.
Not surprisingly, sublease space has increased markedly, CBRE also reported. A total of 14.31 million square feet of sublease space is available in Manhattan, up from 11.22 million square feet at the end of Q2 2020, and currently accounting for 25% of total available space. The availability rate rose 150 basis points during the quarter to 13.6% and is 250 bps higher than in Q3 2019. Net absorption was negative 6.57 million square feet in Q3 2020, bringing the year-to-date total to negative 10.31 million square feet.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
