Scorecard: The steady decline of Manhattan office leasing

A monthly roundup of news and reports on the commercial market

TRD New York /
Sep.September 28, 2016 08:00 AM

Manhattan office leasing slowed by 23 percent over the past two months compared with the same period a year earlier, and is down 39 percent from 2014, an analysis of CoStar Group data revealed.

Tenants inked 476 deals covering 3.4 million square feet between July 1 and August 24 in Manhattan, down from 5 million square feet during that same period last year and 6.2 million square feet in July and August of 2014.

Leasing has slowed overall, but some said smaller tenants are tightening the purse strings more than others. “We are seeing a lot more reticence to [make] decisions on new space for smaller companies,” Douglas Linde, president of office landlord Boston Properties TRData LogoTINY, said during a second-quarter earnings call in late July.

 

Yet, shared space behemoth WeWork continued to ink deals. It’s now targeting Manhattan’s most expensive office market, The Plaza District, where it signed a lease for 159,300 square feet last month.

 

Over the past six months, SL Green Realty, Vornado Realty Trust, Boston Properties and Empire State Realty Trust all mentioned WeWork in earnings calls.

An analyst asked SL Green’s CEO Marc Holliday last month if the approximately 3 million square feet WeWork has under lease in New York made him nervous.

“It is not something that keeps us up at night,” he said.

 

Correction: Because of an editing error, an earlier version of this story did not identify WeWork in one of the sentences.


Related Articles

arrow_forward_ios
4 Times Square (Google Maps, TikTok)

What happens if Trump banishes TikTok, savior of NYC’s office market?

What happens if Trump banishes TikTok, savior of NYC’s office market?
From left: SL Green CEO Marc Holliday, Land & Buildings Investment Management founder Jonathan Litt and Vornado chairman Steven Roth (Unsplash; Land & Buildings Investment Management; Getty)

Activist investor Jonathan Litt is shorting big NYC office landlords

Activist investor Jonathan Litt is shorting big NYC office landlords
WeWork CEO Sandeep Mathrani with WeWork's headquarters at 115 West 18th Street and Twitter CEO Jack Dorsey with Twitter headquarters at 247 West 18th Street (Credit: Google Maps; Getty Images)

Office owners brace for competition — from their tenants

Office owners brace for competition — from their tenants
Twitter CEO Jack Dorsey and 245-249 West 17th Street (Photo by Burhaan Kinu/Hindustan Times via Getty Images)

Twitter, big tenant in Midtown South, says employees can permanently work from home

Twitter, big tenant in Midtown South, says employees can permanently work from home
A rendering of 545 Madison's workspace

Welcome back to your post-corona office. You probably won’t recognize it

Welcome back to your post-corona office. You probably won’t recognize it
From left: Empire State Building, 111 Eighth Avenue and 100 Park Avenue (Credit: Taconic Partners, SL Green) 

Office landlords finding out which tenants are paying up during lockdown

Office landlords finding out which tenants are paying up during lockdown
SL Green CEO Marc Holliday with 400 East 57th Street and 400 East 58th Street (Credit: SL Green, Google Maps)

SL Green puts more properties up for sale to raise cash

SL Green puts more properties up for sale to raise cash
Empire State Realty Trust CEO Anthony Malkin and the Empire State Building (Photo by Roy Rochlin/Getty Images)

A third of Empire State Realty Trust tenants sought rent relief: Q1 report

A third of Empire State Realty Trust tenants sought rent relief: Q1 report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...