Downtown office market begins 2017 with strong Q1

Leasing activity was most in two years

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

From left: Larry Silverstein, 4 World Trade Center and Spotify’s Daniel Ek

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

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

437 Madison Avenue, 50 Hudson Yards, and 1 New York Plaza (Credit: 437 Madison, Hudson Yards, Wikipedia)

Manhattan office leasing just had its most active year since 2001

729 Seventh Avenue (Credit: Google Maps)

Lawyer argued façade was safe 3 months before fatal accident

Bill Ackman, LeBron James, and Arnold Schwarzenegger with 787 11th Avenue (Credit: Google Maps and Getty Images)

Celebrity property group caught in $11M construction dispute