Manhattan office leasing through June 2019

A roundup of news and data on the commercial market
By Kevin Sun and Yoryi de la Rosa | August 01, 2019 10:00AM

OFFICE LEASING IN MANHATTAN

• Midtown office leasing continued to slow in June, totaling just under 1 million square feet, down 21 percent from the month before and 26 percent year-over-year. The availability rate stayed flat at 10.6 percent, while the average asking rent rose to $88.20. The largest deal in Midtown went to advertising agency McCann, which renewed 464,598 square feet at Cohen Brothers’ 622 Third Avenue.

• Leasing activity in Midtown South slowed down in June with 610,000 square feet in leases inked, a 20 percent decline from May. The availability rate ticked down to 10 percent, and the average asking rent fell to $83.12 per square foot. The largest deal in the submarket — and all of Manhattan — went to French advertising and PR giant Publicis, which inked a 977,265-square-foot renewal-expansion at Trinity Church and Norges Bank’s 375 Hudson Street.

• Lower Manhattan office leasing jumped to 890,000 square feet in June, nearly double the month prior, making the first half of 2019 the submarket’s strongest half-year since 2000. The availability rate fell to 13 percent, and the average asking rent rose further, to $63.13 per square foot. The largest deal in the submarket went to HR software firm Justworks, which took up 270,400 square feet at Retirement Systems of Alabama’s 55 Water 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 ’ STOP RECENT TRANSACTIONS

SQ. FT.TENANTADDRESS
464,598McCann (renewal)Cohen Brothers’
622 Third Avenue
78,000Greenhill & Co.1271 Sixth Avenue
37,768Vevo151 West 42nd Street
27,488Norris McLaughlin7 Times Square

Source: CBRE and TRD

MANHATTAN ’ S LARGEST NEW AVAILABLE SPACES

SQ. FT.TENANTADDRESS
977,265Publicis (renewal-expansion)375 Hudson Street
270,400Justworks, Inc.55 Water Street
251,271Flatiron Health, Inc. (renewal-expansion)One Soho Square
54,000Juul LabsOne Soho Square

Source: CBRE and TRD