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

A monthly roundup of news and reports on the commercial markets

New York /
Jan.January 25, 2017 07:30 AM
 

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.

 

“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.

 
 

Related Articles

arrow_forward_ios
Boston Properties CEO Owen Thomas and 343 Madison Avenue (Boston Properties, Getty Images)
Boston Properties plans 1M sf tower at ex-MTA HQ
Boston Properties plans 1M sf tower at ex-MTA HQ
Vornado ceo Steven Roth and One Penn Plaza (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Vornado Realty Trust)
Vornado’s Roth sees “choppy” market, chides Penn skeptics
Vornado’s Roth sees “choppy” market, chides Penn skeptics
Steven Roth, Aby Rosen, and Albert Behler (Illustration by The Real Deal with Getty Images)
Manhattan office leasing has best month since pandemic hit
Manhattan office leasing has best month since pandemic hit
Global Holdings’ Eyal Ofer with 875 Third Avenue (Wikipedia, Loopnet, Getty)
Law firm downsizes in move to Eyal Ofer’s 875 Third Ave
Law firm downsizes in move to Eyal Ofer’s 875 Third Ave
From left: Mark Zuckerberg, Jeff Bezos and 770 Broadway (Getty, Loominosity Z, CC BY-SA 2.0 - via Wikimedia Commons)
Meta, Amazon bail on NYC office expansions
Meta, Amazon bail on NYC office expansions
415 Madison Avenue and Rudin Management’s Bill Rudin (SOM, Rudin Management)
Rudin moves ahead with office building at 415 Madison Avenue
Rudin moves ahead with office building at 415 Madison Avenue
A photo illustration of office buildings in New York City (iStock)
Manhattan offices continue struggle as downtown hits new low
Manhattan offices continue struggle as downtown hits new low
Jeff Gural’s GFP borrows $191M on 40 Worth Street
Jeff Gural’s GFP borrows $191M on 40 Worth Street
Jeff Gural’s GFP borrows $191M on 40 Worth Street
arrow_forward_ios

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

Loading...