Downtown office market begins 2017 with strong Q1

Leasing activity was most in two years

New York /
Apr.April 03, 2017 12:00 PM

Downtown Manhattan’s office market has its best quarter in two years.

Led by big leases like Spotify’s 378,000-square-foot deal at Silverstein Properties’ Four World Trade Center, the submarket recorded 2.3 million square feet in the first quarter, the Wall Street Journal reported.

That was the most in two years, and 44 percent above the quarterly average since 2007. Downtown logged five of the 10 largest Manhattan leases for the quarter, according to JLL.

In areas of Midtown South where activity is usually highest among tech and advertising firms, insurance, beauty and financial companies signed the biggest leases.

And while overall activity has been strong, asking rents remained mostly flat. Downtown rents dipped 2.2 percent to $56.45 per square foot, while Midtown rents crept up 1.1 percent to $75.78 per square foot.

Midtown South was the standout, with asking rents climbing 11.7 percent to $76.65 per square foot.

There are about 11.7 million square feet worth of new office space expected to hit the market in Manhattan through 2020. Half of that space is committed. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple snags more space at Vornado’s 11 Penn Plaza

Apple snags more space at Vornado’s 11 Penn Plaza
Amazon's Jeff Bezos, Google's Sundar Pichai and Facebook's Mark Zuckerberg (Getty, iStock)

Tech giants occupy nearly 600M-sf of US real estate

Tech giants occupy nearly 600M-sf of US real estate
Hana Financial Investment’s Lee Jin-Kook and a rendering of 1 St. Marks Place (Hana Financial Investments)

Hana Financial to sell loans tied to Manhattan office, hotel properties

Hana Financial to sell loans tied to Manhattan office, hotel properties
Cineworld Group CEO Mooky Greidinger and Regal Cinema (Photo via Getty; Wikipedia)

Regal Cinemas scores financial rescue package

Regal Cinemas scores financial rescue package
(iStock)

What doom-and-gloom forecasts miss about the office market

What doom-and-gloom forecasts miss about the office market
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
The Grand Hyatt Hotel at 109 East 42nd Street and and  RXR’s Scott Rechler (Wikipedia Commons; Getty)

Grand Hyatt redevelopment could be 1,600-foot supertall

Grand Hyatt redevelopment could be 1,600-foot supertall
arrow_forward_ios

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

Loading...