Office leasing in Manhattan
• Midtown office leasing fell back from an all-year high in December with 1,580,000 square feet in leases inked, down 43 percent from the prior month and down 50 percent year-over-year. The availability rate held steady at 11.3 percent, while the average asking rent continued to fall, reaching $86.35. Once again, the submarket and the city’s top deal went to a FAANG firm in the Hudson Yards area, with Amazon picking up 335,000 square feet at SL Green’s 460 West 34th Street.
• Midtown South saw a total of 490,000 square feet in leases inked in December, up 14 percent from the month before but down 33 percent year-over-year. The availability rate stayed flat at 9.8 percent, while the average asking rent rose one dollar to $84.67 per square foot. The submarket’s largest deal went to website-building service provider Squarespace, which added 50,000 square feet to its headquarters at Hudson Square Properties 225 Varick Street.
• Leasing activity in Lower Manhattan exploded to 1.03 million square feet in December, more than triple the month before and up 87 percent year-over-year. The availability rate rose to 12.1 percent, and the average asking rent climbed to $63.10 per square foot. The largest deal in this submarket went to fashion retailer L Brands, which inked a lease for 219,564 square feet at Retirement Systems of Alabama’s 55 Water Street.