Manhattan office leasing slows

By James Kelly | July 28, 2008 05:25PM

Manhattan’s leasing activity slowed to 6.7 million square feet in the second quarter, down 12.4 percent from the previous quarter, according to a report from GVA Williams.

The average asking rent was up 3.6 percent from the first quarter to $79.39 per square foot, rising at a much slower pace than the 8.4 percent rent growth between last year’s first two quarters. Manhattan’s availability rate was up 60 basis points from the first quarter to 9.0 percent.

The average asking rent in Midtown North rose 3.2 percent to $95.08 per square foot in the second quarter, the report said. The availability rate there increased 120 basis points to 9.6 percent.

Midtown South, meanwhile, saw an 11.0 percent fall in average asking rent to $57.82 per square foot over the same period. The availability rate fell 90 basis points to 7.5 percent. 

In Downtown, the availability rate crept up 40 basis points to 8.9 percent in the second quarter compared to the previous quarter. The average asking rent there continued to grow, increasing 1.3 percent to $51.08 per square foot, the report said.