The Manhattan office market showed signs of life last month as more tenants inked deals.
All three major markets – Midtown, Midtown South and Downtown – recorded increased leasing velocity from the prior month and year-over-year, according to a new Colliers report.
Manhattan’s year-to-date activity reached 9.08 million square feet in April, ahead of the 8.85 square-foot volume during the same time period last year.
Leasing demand grew more than 50 percent to 2.75 million square feet, almost double that of a year ago. The availability rate held steady from last month around 18 percent.
“Manhattan office leasing demand certainly outpaced supply in April,” said Franklin Wallach, executive manager of research & business development at Colliers. “Although one month alone doesn’t dictate the direction of the market, April was a reminder that Manhattan’s office tenant base is diverse and that any recovery will be dependent on the combined actions of numerous industries.”
The month’s biggest transactions were American Eagle’s new 338,000-square-foot lease at 63 Madison Avenue, Palantir’s 140,000 square-foot renewal at 620 Sixth Avenue and TD Bank’s 80,000 square-foot lease at 22 Vanderbilt.
Midtown South accounted for the largest share of demand and leasing velocity in the neighborhood grew by almost 78 percent since March and more than tripled since last April.
Class A buildings continued to account for most of the leasing activity, accounting for more than 70 percent of volume.
Although April demand surpassed the five-year rolling monthly average, it still fell below the pre-pandemic monthly average from 2019. The availability rate has grown 80 percent since March 2020 to almost 97 million square feet, with 43 million square feet of negative absorption.