Downtown was the sole submarket in Manhattan to see a positive rate in the sales and leasing of office properties during the third quarter of 2013, according to a report released today from Cushman & Wakefield.
The area had a 2.8 percent increase in office lease deals in October compared to the same period a year ago, which resulted in an additional 523,000 square feet being rented. The average asking rent rose 14.8 percent to $45.66 per square foot in October over the prior year, the data show. The quarterly absorption level was the highest it has been since 2011’s second quarter, when nearly 561,800 square feet was reported.
“Lower Manhattan has re-invented itself as a 24/7 hub where creative and innovative companies can flourish, with full-service amenities such as upscale eateries, soon 1 million square feet of retail shopping and vibrant nightlife,” Tara Stacom of Cushman & Wakefield said in a statement. “For perhaps the first time in its history, Downtown is increasingly being seen as a tenant’s most desired option.”
Since the year began, more than 30 firms relocated Downtown from Midtown South or other parts of Midtown. Most notably, advertising agency Droga5 inked a 91,440-square-foot lease at 120 Wall Street and Christian liberal arts school Nyack College grabbed 166,385 square feet at 2 Washington Street, as previously reported. — Mark Maurer