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.”