Scorecard: Despite plenty of available product, office leasing is trending downward

A monthly roundup of news and reports on the commercial markets

TRD New York /
Jan.January 25, 2017 07:30 AM
Manhattan-Office-activity-1

Manhattan office leasing has been on a gradual downward trend over the past 12 months, an analysis of CoStar Group figures showed.

Through late December, tenants in 2016 leased 30.76 million square feet, a 17 percent decline from 2015.

One strong point in the market last year was Hudson Yards, where a few of the top leases were signed; they include Coach which took 694,000 square feet, and the law firm Milbank, Tweed, Hadley & McCloy, which took 250,000 square feet. “Hudson Yards, which [had been] a pretty challenging reach, has borne fruit,” said Arthur Mirante, a broker at Avison Young TRData LogoTINY.

Eric Thomas, a broker at the tenant-representative firm Cresa, was also eyeing tenants for a space there He’s representing Robert A.M. Stern Architects, which recently inked a deal to move to Midtown later this year. The company has three years left on a Hudson Yards lease, and Thomas is targeting firms that may want to send a small group to the neighborhood while they build out a much large space in one of the new skyscrapers.

manhattan-net-absorption-rate

“They may want to send 30 to 50 people,” as part of a management change, Thomas said.

Overall, the Manhattan office market remained balanced in 2016, with few regions lagging far behind others, according to Mirante. Yet some classes of office space have struggled more than others. “It is a flight to quality. It is commodity space that is suffering,” Thomas said.

Manhattan-days-on-the-market
 

Related Articles

arrow_forward_ios
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

New batch of Manhattan office towers competing for elite tenants

New batch of Manhattan office towers competing for elite tenants

arrow_forward_ios