Manhattan office leasing down 610K sf from Q1 in 2015

First time the market has experienced negative absorption since Q3 in 2013

TRD New York /
Apr.April 08, 2016 04:55 PM

The Manhattan office market is showing signs of slowing down as landlords put more space on the market than tenants took — the first time that’s happened since the first quarter of 2013.

In the first quarter of this year, 6.6 million square feet was leased, a decrease from 7 million square feet during the first quarter of last year, according to Cushman & Wakefield data.

Around 806,000 more square feet of office space was put on the market than was leased, Bloomberg reported.

In 2014, office leasing hit a high with a total of 32.8 million square feet, the most since 1998, according to the Cushman data. 

Midtown’s overall vacancy rate increased quarter-over-quarter to 9.3 percent from 8.8 percent, the data shows.

In February, Midtown office rent dropped with tenants paying 7.4 percent less than they did at the end of last year. Midtown, which has faced increased competition from boutique office space in the Meatpacking District and upcoming developments such as Hudson Yards, has been cutting rents to keep and attract tenants.

The Real Deal reported that real estate investment trusts focused on office space — SL Green Realty, Vornado Realty Trust and Boston Properties — have struggled to deliver positive returns. [Bloomberg]Dusica Sue Malesevic

Related Articles

From left: 50 Hudson Yards, 341 Ninth Avenue, 30 Hudson Yards (background) with Google's Sundar Pichai, Amazon's Jeff Bezos and Facebook's Mark Zuckerberg (Credit: Google Maps and Getty Images)

Big tech puts Manhattan office leasing within reach of annual record

Albert Laboz of United American Land with 430 West Broadway and 419 Broadway (Credit: Getty Images and rendering via YIMBY)

Laboz family plans 2 office developments
in Soho

From left: 1271 Sixth Avenue, 30 Hudson Yards, and 55 Water Street (Credit: Wikipedia)

Manhattan leasing activity up year-over-year while asking rents hit record high

(Credit: iStock)

Office rents in U.S. are going up — barely

From left: McCann Chairman & CEO Harris Diamond, Cohen Brothers Realty President & CEO Charles S. Cohen and 622 Third Avenue (Credit: Getty Images, Google Maps)

McCann inks 450K sf extension at Cohen Brothers’ 622 Third Ave

From left: One Manhattan West, Amazon CEO Jeff Bezos and One Court Square in Long Island City (Credit: Manhattan West, Getty Images, and Loopnet)

After LIC debacle, Amazon sizing up Brookfield buildings for new office: report

From left: 28 West 44th Street, 25 West 45th Street and 183 Madison Avenue with WeWork CEO Adam Neumann (Credit: Google Maps, APF Properties, and Getty Images)

WeWork signed four leases this week for its “headquarters” offering

Even with Midtown South’s slip, Manhattan posts record leasing volumes and asking rents in Q1: report

Even with Midtown South’s slip, Manhattan posts record leasing volumes and asking rents in Q1: report