Two quarterly reports from Savills and Colliers underscore an improvement in Manhattan's office leasing market, albeit at a pace that is still not likely to meet pre-pandemic norms.

Manhattan office leasing velocity totaled 8.7 million square feet in Q2, according to Savills, with leasing for the first half of 2024 totaling 15.5 msf and increased 8.9% from H1 2023, Savills said. It added that the quarterly leasing was still 6.3% shy of the pre-pandemic Q2 average, with Colliers noting that if Manhattan's leasing volume were to continue at the same pace for the second half of the year, full-year 2024 leasing velocity would still fall approximately one-third below full-year 2019 activity.

Bloomberg's 946,815-square foot renewal at 731 Lexington Avenue was the largest lease of the quarter by a considerable margin and contributed to the stronger total leasing volume, Savills said.