Scorecard: Manhattan office leasing just keeps sliding

A monthly roundup of news and reports on the commercial market

TRD New York /
Nov.November 29, 2016 04:50 PM

From the November Issue: Office leasing in Downtown and Midtown South were off sharply in the past four months compared with the same period in 2015, an analysis of CoStar Group data by The Real Deal revealed.

Midtown, however, saw more office leasing activity during that time — led by big deals at Hudson Yards.

Midtown South leasing volume between the beginning of July and the end of October fell to 1.3 million square feet, from 2.1 million square feet, a decline of nearly 40 percent compared with the same period last year.


“The demand has softened because a lot of tenants are going to Long Island City,” Catherine O’Toole TRData LogoTINY, of Coldwell Banker Commercial Alliance, said.

Meanwhile, Downtown leasing fell by nearly 50 percent.


Midtown was the outlier, with several blockbuster leases, including Coach’s 694,000-square-foot lease at 10 Hudson Yards and Random House’s 631,025-square-foot lease renewal at 1745 Broadway.


Overall, office leasing in Manhattan during the four- month period fell by 12 percent, from 10.4 million square feet in 2015 to 9.1 million square feet in 2016. That decline in leasing volume has given tenants more leverage than in the past few years.

“We are at the inflection point right about now,” said Savills Studley’s David Carlos. “We see availability starting to grow.”

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

(Credit: iStock)

Manhattan rents hit highest level in more than a decade

Adam Hochfelder at the Playboy Club’s opening party with singer Robin Thicke (Alamy Images)

The Playboy Club was a chance at redemption for Adam Hochfelder — here’s what went wrong

From top: 29 Nassau Avenue, 8973 Bay Parkway and 94 9th Street (Credit: Google Maps)

The 10 biggest Brooklyn retail leases of 2019

From left: Dan Teran and Joe De Bey (Credit: Getty Images)

Two bitter rivals compete for WeWork castoff

Lachlan Murdoch, the Chartwell Estate in Bel Air, and Jerry Perenchio

Lachlan Murdoch sets LA record with $150M deal for Bel Air mansion