Manhattan’s office leasing market had a record year in 2018

32M sf of deals was best since 2000: CBRE

New York /
Jan.January 04, 2019 09:30 AM

From left: Tishman Speyer’s Spiral at 66 Hudson Boulevard, 441 Ninth Avenue, 1271 Sixth Avenue

Though other real estate sectors struggled in 2018, it was a record-setting year for Manhattan’s office-leasing market.

Leasing activity – which includes new deals and expansions – hit 32.4 million square feet last year, the highest annual total since 2000, according to CBRE.

At the turn of the century, Manhattan saw 33.1 million square feet of deals, and over the past 10 years the average has been 25.8 million square feet. Last year’s total surpassed that average by 26 percent.

The strong economy and – until recently – a booming stock market helped drive business growth. And expanding office employment helped buoy the year’s numbers.

Large corporate users made big moves in the year, including Pfizer’s planned relocation to Tishman Speyer’s Spiral building in Hudson Yards, Peloton’s lease at 441 Ninth Avenue and Latham & Watkins’ deal at 1271 Sixth Avenue.

Financial service firms inked the lion’s share of deals, accounting for 28 percent of Manhattan’s leasing activity. And activity among co-working firms – which usually accounts for 2 to 4 percent of the market – surged to 18 percent of leasing activity in 2018. Tech companies accounted for 10 percent of leasing volume, while law firms inked 8 percent of activity.


Related Articles

arrow_forward_ios
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
Mayor Bill de Blasio (Getty, iStock)
NYC to revive $17B in public construction projects
NYC to revive $17B in public construction projects
Houston House at 298 East 2nd Street and Matt Lee (Houston House, LinkedIn)
Developer Matt Lee to auction off East Village condo
Developer Matt Lee to auction off East Village condo
arrow_forward_ios

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

Loading...