Leasing volume in Midtown Manhattan more than doubled in August from the prior month as the island’s average office asking rent slid to $72.68 per square foot, the lowest since 2017.
A total of 1.46 million square feet of office space was leased in Midtown, or about 60 percent of Manhattan’s leasing volume for the month, according to Colliers International’s Manhattan office market snapshot for August. That helped reduce Manhattan’s availability rate to 16.9 percent from a record 17.1 percent in July.
Helping drive that reduction was a 670,000-square-foot reduction in net sublease availability, the largest monthly drop recorded in six years. Still, the amount of available space on the market — more than 90 million square feet — remains 70 percent higher than in March 2020.
August leasings were led by Crédit Agricole’s 167,000-square-foot deal at Paramount Group’s office tower at 1301 Sixth Avenue and DBO USA’s 143,000-square-foot deal at Tishman Speyer’s Metlife Building at 200 Park Avenue, both in Midtown.
Leasing volume in the Midtown South and Downtown submarkets was 508,000 square feet and 473,000 square feet, respectively, both lower than the month before.