Manhattan office leases more than double in Q4

Jan.January 02, 2014 06:15 PM

Office leasing in Manhattan hit new heights in the fourth quarter of 2014, buoyed by Citigroup’s 2.6 million-square-foot renewal and a flurry of activity Downtown.

A total of 12.7 million square feet of leases were signed in the fourth quarter, up from 5.8 million during the same period of 2012, according to a report from brokerage Studley cited by Bloomberg News. The office availability rate in Manhattan stayed steady at 12.2 percent.

Landlords sought an average of $63.04 per square foot in the final quarter of 2014, a 10.6 percent year-over-year increase. In Midtown, rents averaged $72.32 per square foot, while Downtown rates lifted 19 percent to $52.27 a foot.

Lower-priced space Downtown drew a number of value-seeking tenants, such as advertising and media company GroupM, which moved from the Garment District to anchor Silverstein Properties’ 3 World Trade Center and law firm Jones Day’s move to 330,000 square feet at 4 Brookfield Place. The activity continued a surge seen during the previous quarter.

“Manhattan’s core office-space users — major banks, law firms and a wide range of professional and business services — remain focused on containing costs,” Steven Coutts, Studley’s vice president for research, told Bloomberg via email. “Making space work harder is becoming more widespread.”

Citigroup’s renewal at 388 and 390 Greenwich Street, where the financial firm is relocating its headquarters, was the quarter’s largest deal. [Bloomberg News]Julie Strickland

Related Articles

Park Avenue pictured on March 30, 2020 (Credit: John Nacion/NurPhoto via Getty Images)

Manhattan office leasing just had its worst quarter since 2013

From left: L&L Holding Company's 425 Park Avenue with CEO David Levinson, Citadel Securities founder Ken Griffin, and Vornado Realty Trust’s 350 Park Avenue with CEO Steve Roth (Credit: (Photo by Michael Kovac/Getty Images; L&L Holding Company; Vornado)

Citadel Securities expands nearby lease while waiting on 425 Park

Clockwise from top left: 66-26 Metropolitan Avenue, 11 Penn Plaza and 181 Livingston Street (Credit: Google Maps, 181 Livingston via Tishman Speyer) 

Tech inked big office leases in February, but not the biggest

Brookfield's Ric Clark and Two Hanson Place in Brooklyn (Credit: Google Maps, iStock)

Brookfield signs energy company to big lease in DoBro

From left: 110 East 59th Street, The Spiral at 66 Hudson Blvd East and 55 Water Street (Credit: Tishman Speyer, Jack Resnick & Sons)

Office leasing picks up in Midtown but slows elsewhere

From left: 330 Madison Avenue, 66 Hudson Boulevard and 599 Lexington Avenue (Credit: Google Maps)

Law firms topped the list of January’s biggest office leases in NYC

260 Madison Avenue and Sapir Organization’s Alexi Sapir (Credit: Getty Images)

Sapir Org inks big renewal with law firm at 260 Madison

(Credit: iStock)

Data Alert! Manhattan office leasing through November 2019