Manhattan office leasing through January 2019

A roundup of news and data on the commercial market

Mar.March 01, 2019 12:00 PM

OFFICE LEASING IN MANHATTAN

  • Midtown office leasing fell by nearly half in January after spiking in December and totaled 1.59 million square feet, up slightly year over year. The availability rate ticked up to 10.8 percent, while the average asking rent rose more than $4 to $82.47 per square foot — the highest rate since 2008. The largest deal in the submarket was Citadel LLC’s expansion at 425 Park Avenue, totaling 194,900 square feet.
  • Leasing activity in Midtown South fell by a quarter in January, with 550,000 square feet in deals inked, 53 percent more than the previous January. The availability rate rose to 10 percent, up a fraction from December, while the average asking rent rose to $82.27. The largest lease in Midtown South went to the co-working firm Spaces, which took up 79,791 square feet at 31 Penn Plaza.
  • Lower Manhattan office leasing reached a whopping 910,000 square feet in January, up 65 percent from December and up 168 percent from last January. The availability rate inched upwards to 13.3 percent, and the average asking rent also rose, to $61.79 per square foot. More than half of the total leasing volume in the submarket came from one massive deal, the largest citywide, when New York City Health & Hospitals signed a 24-year, 526,552-square foot lease at 100 Pearl Street.

MIDTOWN’S LEASING ACTIVITY AND AVAILABILITY RATE

MIDTOWN SOUTH’S LEASING ACTIVITY AND AVAILABILITY RATE

DOWNTOWN’S LEASING ACTIVITY AND AVAILABILITY RATE

MIDTOWN’S AVERAGE ASKING RENT AND TAKING RENT INDEX

MIDTOWN SOUTH’S AVERAGE ASKING RENT AND TAKING RENT INDEX

DOWNTOWN’S AVERAGE ASKING RENT AND TAKING RENT INDEX

 

TOP DEALS

MANHATTAN ’S TOP RECENT TRANSACTIONS

SQ. FT.TENANTADDRESS
526,552New York City Health &
Hospitals Corporation
100 Pearl Street
194,900Citadel LLC (expansion)425 Park Avenue
144,451Hunton Andrews Kurth (renewal)200 Park Avenue
79,791Spaces31 Penn Plaza

Source: CBRE

MANHATTAN ’S LARGEST NEW AVAILABLE SPACES

SQ. FT.TENANTADDRESS
395,000250 Broadway*Downtown
347,000625 Madison Avenue*Midtown
264,000375 Park AvenueMidtown
235,000135 West 50th Street*Midtown

*This space was already on the market, but has now fallen within 12 months of tenant possession and therefore was added to statistics.
Source: CBRE


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