Office leasing in Manhattan
• Midtown office leasing hit a new all-year high in November with 2,750,000 square feet in leases inked, up 36% from the prior month’s record and up 58% year-over-year. The leasing spurt pushed the availability rate down to 11.3%, while the average asking rent fell by nearly $2 to $87.03, all thanks to the month’s headline deal — Facebook’s 1.5 million-square-foot lease across three buildings at Hudson Yards, which accounted for more than half of all Midtown space leased.
• Midtown South saw a total of 430,000 square feet in leases inked in November, down 4% from the month before and 38% year-over-year. The availability rate rose to 9.8 percent, and the average asking rent fell to $83.67 per square foot. The submarket’s largest deal went to Japanese advertising company Dentsu Aegis Network, which took up 322,000 square feet at Tishman Speyer’s Morgan North Post Office redevelopment at 341 Ninth Avenue.
• Leasing activity in Lower Manhattan totaled 330,000 square feet in November, down 3% from the month before and down 27% year-over-year. The availability rate slid to 11.6%, and the average asking rent rose to $62.79 per square foot. The largest deal in this submarket, and citywide, went to the investment bank Morgan Stanley, which renewed its 1.25 million-square-foot lease at 1 New York Plaza.