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
SL Green CEO Marc Holliday and One Vanderbilt (Getty)
SL Green asking record $322 psf at One Vanderbilt
SL Green asking record $322 psf at One Vanderbilt
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
Hybrid horizons: How 3 Manhattan office tenants are retooling the workplace
Employees revolt against return-to-office edicts
Employees revolt against return-to-office edicts
Employees revolt against return-to-office edicts
Diamond District building sold for $101M
Diamond District building sold for $101M
Diamond District building sold for $101M
80 Pine Street and Rudin Management's Bill Rudin
Rudin Management nabs $100M loan for 80 Pine
Rudin Management nabs $100M loan for 80 Pine
1777 Sixth Avenue with CalSTRS CEO Cassandra Lichnock (Google Maps, CalSTRS)
CalSTRS deal values 1177 Sixth Ave at $860M
CalSTRS deal values 1177 Sixth Ave at $860M
From left: Vornado's Steven Roth with 11 Pennsylvania Plaza and 1540 Broadway (Getty, Jorge Láscar/Flickr, VNO)
Manhattan office rents under pressure with 17% availability
Manhattan office rents under pressure with 17% availability
UBS CEO Ralph Hamers (Getty, ING Group / Sander Stoepker)
UBS Group going hybrid as workers return
UBS Group going hybrid as workers return
arrow_forward_ios

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

Loading...