Manhattan Posts Strongest Leasing Month Since January 2020
Leasing activity increased 10.8% from September; a 52.9% year-over-year gain.
October was Manhattan’s strongest office leasing month since January 2020, according to Colliers.
In its Manhattan Monthly snapshot, at 2.7 million square feet, Colliers reported leasing activity increased 10.8% from September; a 52.9% year-over-year gain.
However, the January to October leasing total of 19.03 million square feet) is already above 2020’s full year volume of 18.97 million square feet) but well-below the 33.68 million square feet leased year-to-date in 2019.
Availability in October rose .2 percentage points to 17% after declining in August and September.
Since the pandemic started in March 2020, Manhattan’s overall availability has risen 69.6% to 91.35 million square feet.
Looking at submarkets on the island, Colliers said with 1.48 million square feet leased in October, Midtown’s leasing activity grew by 52.7% since September; Downtown’s leasing activity of .44 million square feet was a hike of nearly 50% compared to the prior month; and Midtown South’s leasing volume decreased by one-third to .78 million square feet.
For average asking rents, Midtown decreased slightly in October to $78.73 per square foot per year compared to September’s $78.75 while Downtown saw a dip to $58.78 from $58.90 and Midtown South rose to $76.71 from $73.69.
The Midtown South hike driven by the above-average priced blocks at 2 Manhattan West and 295 Lafayette Street.
Savills Research reported in October Manhattan sublease supply was down 1.2 million square feet in the third quarter from 22 million in the first quarter.
Subleasing activity accounted for 23.4% of leasing activity during the third quarter, up from 15.7% a year ago which is contributing to the decrease in sublease supply.
Savills said the availability of space in Manhattan holds steady but remains elevated for both direct and sublet supply. “As sublet available space starts to decline, a larger wave of recently added direct available space has led to the significant rise in overall availability.”