Office leasing activity in Manhattan continued its downward trend in November. Research from Colliers International found that leasing activity declined 55% from October and 80% year-over-year.

In November, a total of .79 million square feet in lease transactions closed in Manhattan, compared to 3.58 million square feet in November 2019, with negative absorption of nearly 3 million square feet. As a result, the market's vacancy rate increased yet again for the sixth straight month to 13.5%, the highest vacancy rate in the market since 2003. The sublease market is driving a significant portion of the office vacancy, accounting for nearly 25% of total available space. The sublease supply increased again in November by .99 million square feet.

Midtown continued to be the bright light in the Manhattan office market. Like in October, Midtown drove the majority of leasing activity, with total transaction volume up 29.3% for the month; however, activity was still down more than 65% year-over-year. Travelers inked the largest lease in the market, signing a 134,000-square-foot lease renewal at 485 Lexington Avenue. The activity wasn't enough to keep the vacancy rate from creeping up—it increased by .5% for the month, the highest on record—or rental rates from falling—they were down 1.1% to $82.87 per square foot for the month.