Office leasing volume falls in August, report says

New York /
Sep.September 09, 2009 03:56 PM

Following a two-month rally in office leasing volume, the number of square feet leased in August fell by half, according to new data in a monthly report (see report below) from real estate services firm Cushman & Wakefield.

Office leasing volume fell by more than 50 percent in August compared with July, when 2.1 million square feet was leased. Just 1 million square feet was leased in August, the firm’s managing director and head of research, Kenneth McCarthy, said.

“We are a bit concerned about that. I do think there is a sense in the marketplace that there is activity out there. Maybe this was an unusually slow August. But overall it was a bit of a setback after two fairly healthy months,” he said.

Between 2001 and 2007, an average of 2.1 million square feet was leased in the month of August, McCarthy said.

Leasing in June was an improvement from May, and July was the best month of the year.

Average asking rents were down in August by 1.3 percent to $57.73 from a month earlier, and down 21 percent from August 2008, the report shows.

The weak market provided a benefit to tenants, McCarthy said.

“Prices are very attractive,” but many companies are not taking as much space as they were in prior years, he said.

In a positive sign for landlords, the vacancy rate in Manhattan held steady at 10.9 percent in August, the Cushman & Wakefield data indicates.

Got a tip? E-mail Adam Pincus at [email protected]

 
Manhattan Stats August 2009


Related Articles

arrow_forward_ios
Here’s what tenants are paying at Silverstein’s 120 Wall Street
Here’s what tenants are paying at Silverstein’s 120 Wall Street
Here’s what tenants are paying at Silverstein’s 120 Wall Street
1301 6th Avenue, Paramount CEO Albert Behler and 31 West 52nd Street (Getty; Hines/Photo Illustration by Kevin Rebong for The Real Deal)
Paramount Group revenue declined $30M in 2020
Paramount Group revenue declined $30M in 2020
Celebrity broker Ryan Serhant and his firm's future office. (PopShop, Ryan Serhant)
Ryan Serhant leases 15K sf to open Soho HQ
Ryan Serhant leases 15K sf to open Soho HQ
Condé Nast CEO Roger Lynch and Durst Organization chairman Douglas Durst (Getty, iStock)
Condé Nast considers move to Gold Coast to save money
Condé Nast considers move to Gold Coast to save money
Robinhood founders Vladimir Tenev and Baiju Bhatt (Robinhood)
Robinhood looking for NYC office as Reddit traders upend Wall St.
Robinhood looking for NYC office as Reddit traders upend Wall St.
Apple CEO Tim Cook and Kaufman Astoria Studios at 34-11 36th Street in Astoria (Getty; ONstate Kaufman)
Apple TV+ signs big lease at Kaufman Astoria Studios
Apple TV+ signs big lease at Kaufman Astoria Studios
Freshly CEO Michael Wystrach and 28 East 28th Street (Photos via Twitter; Google Maps)
Freshly inks big lease in NoMad
Freshly inks big lease in NoMad
(Photo illustration by The Real Deal)
601W Companies ups office bets during pandemic
601W Companies ups office bets during pandemic
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...