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.
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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.
