Manhattan monthly office leasing activity fell below 2M sf for first time this year in May

Average asking rents in borough climb to $72.81 psf: CushWake

TRD New York /
Jun.June 09, 2016 05:45 PM

Demand for Manhattan office space “lost some momentum” in May, according to Cushman & Wakefield’s latest office market report, which noted that monthly leasing activity in the borough fell below 2 million square feet for the first time this year.

There were 1.8 million square feet of new Manhattan office leases signed last month, the brokerage noted, the lowest level of monthly leasing so far in 2016. Year-over-year, leasing activity is down 13.5 percent.

But overall vacancy “declined slightly” to 9 percent in May – a reduction of 10 basis points, or 0.1 percent – due to “a noticeable reduction in the amount of new space added to the market,” Cushman said.

“Despite a slowdown in leasing velocity in May, a minimal amount of new supply hit the market, allowing for the overall vacancy to drop,” said Richard Persichetti, research director for Cushman in the Tri-State area.

Overall Manhattan average asking rents climbed to $72.81 per square foot last month, up 3.8 percent from $70.13 per square foot in May 2015. Midtown rents, in particular, were strong, jumping 3.6 percent year-over-year to $79.04 per square foot, which Cushman noted was the highest level since December 2008.

The largest Manhattan office lease signed in May was Swiss banking giant UBS’s 900,000-square-foot renewal at RXR Realty’s 1285 Sixth Avenue in Midtown.

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

Amazon CEO Jeff Bezos (Credit: Getty Images)

Mapping Amazon’s current office and warehouse footprint in NYC

Today’s Northern NJ office sales volume is double 2018’s

Today’s Northern NJ office sales volume is double 2018’s

Clockwise from left: 1 New York Plaza, Hudson Yards, 341 Ninth Avenue and 55 Water Street (Credit: Google Maps, Wikipedia Commons, Getty Images)

These were NYC’s top office leases in November

The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

Bruce Mosler and Simon Ziff

Simon Ziff and Bruce Mosler join lineup at Future City 2020

151-45 6th Road and Stephen Preuss

Massive, controversial Queens site back on market

From left: 295 Fifth Avenue, 3 World Trade Center, 50 Rockefeller Plaza (Credit: Google Maps, Wikipedia)

These were NYC’s top office leases in October