Lower Manhattan office leasing increased 80 percent in 2011

February 14, 2012 04:30PM

Commercial office leasing in Lower Manhattan totaled 5.86 million square feet in 2011, an 80 percent increase over 2010, according to a report by the Alliance for Downtown New York.

Thirteen of the top 20 leases for the year were for over 100,000 square feet, the Alliance said, while total office vacancy for the area ended the year at 9.5 percent, down from 9.9 percent in the second quarter of 2011 and 11.5 percent in the last quarter of 2010. Meanwhile, according to data from Cushman & Wakefield, Lower Manhattan also maintained its ranking as the business district with the third-lowest vacancy rate in the nation.

Rents remained stable for office space throughout 2011, ending the year at an average rent of $39.88 per square foot, a 2 percent increase from the previous quarter.

The largest tenants in the district by sector remained finance, insurance government and professional services, the report shows. — Katherine Clarke