Office leasing in Lower Manhattan has returned to post pandemic levels after leasing in the neighborhood experienced an inflated level of activity in Q2, primarily due to a single large lease for a government agency, according to the Alliance for Downtown New York.
Meanwhile vacancy rates have fallen, but remain stubbornly high, while the retail and hospitality markets continued to show positive signs, the organization reports.
Lower Manhattan recorded 620,066 square feet of new leasing in the third quarter, which marked a decline from the previous quarter's activity, but a 20% increase from the first quarter of the year. The two largest leases of the quarter included a 183,255 square-foot renewal for the Department of Citywide Administrative Services at 255 Greenwich Street and a 121,904 square-foot relocation from Midtown South to 120 Broadway for Tower Research Capital. The overall vacancy rate fell slightly to 23.9%, but is still up 0.9% year-over-year.
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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.
