Manhattan office leasing through February 2019

A roundup of news and data on the commercial market
By Kevin Sun and Yoryi de la Rosa | April 01, 2019 09:00AM

OFFICE LEASING IN MANHATTAN

  •  Midtown leasing continued its slowdown in February, totaling less than 1 million square feet, 32 percent below the five-year monthly average. The availability rate rose slightly, to 10.8 percent, while the average asking rent rose past $85 per square foot for the first time since 2008, reaching $85.79. The largest deal in Midtown was language services firm TransPerfect’s 124,000-square-foot lease at 1250 Broadway.
  • Leasing activity in Midtown South fell by more than half in February from the month before, with just 250,000 square feet in leases inked, 46 percent less than the five-year average. The availability rate stayed flat at 10 percent, while the average asking rent rose to $82.70 per square foot, an $8-plus increase from last February. The largest deal in the submarket went to Google, which continued to grow its Hudson Square presence by expanding its footprint at 345 Hudson Street with another 62,500 square feet.
  •  Lower Manhattan leasing dropped in February after a January spike. Deal volume clocked in at 450,000 square feet, which for the fifth straight month still beat the five-year monthly average. The availability rate crept up slightly, to 13.4 percent, and the average asking rent rose to $62.17 per square foot, slightly lower than the same month last year. The largest Downtown deal was once again the largest citywide as well, with Pace University inking a 207,000-square-foot renewal at 161 William Street.

MIDTOWN’S LEASING ACTIVITY AND AVAILABILITY RATE

MIDTOWN’S AVERAGE ASKING RENT AND TAKING RENT INDEX

MIDTOWN SOUTH’S LEASING ACTIVITY AND AVAILABILITY RATE

MIDTOWN SOUTH’S AVERAGE ASKING RENT AND TAKING RENT INDEX

DOWNTOWN’S LEASING ACTIVITY AND AVAILABILITY RATE

DOWNTOWN’S AVERAGE ASKING RENT AND TAKING RENT INDEX

TOP DEALS

MANHATTAN ’S TOP RECENT TRANSACTIONS

SQ. FT.TENANTADDRESS
206,785Pace University (renewal)161 William Street
201,231WeWork199 Water Street
123,696TransPerfect Translations
International, Inc.
1250 Broadway
103,638Lyft, Inc.441 Ninth Avenue

Source: CBRE

MANHATTAN’S LARGEST NEW AVAILABLE SPACES

SQ. FT.TENANTADDRESS
750,000550 Madison Avenue*Midtown
406,000100 Pearl Street*Downtown
111,0001540 Broadway
(Viacom Inc. sublet)
Midtown
99,000817 BroadwayMidtown South

*Space was previously on the market, but was included because it’s now within the 12-month window for tenant occupancy

Source: CBRE