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.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
