February leasing reached nearly 2.4 million square feet (msf), fueled by four new leases greater than 100,000 square feet (sf). Downtown captured the largest lease for the second month in a row with WeWork signing a new lease at 199 Water Street for 201,251 sf.
Despite the steady stream of leasing, nine new blocks greater than 50,000 sf pushed overall vacancy up by 50 basis points (bps) to 9.8% during February and up from 8.6% one year ago. Overall asking rents increased $0.83 per square foot (psf) to $73.62, marking the highest monthly increase since January 2016.
Download the full January Manhattan MarketBeat Report by clicking here or on the graphic to the right.
In Midtown, new leasing activity reached nearly 1.4 msf in February, marking the fourth-lowest monthly total over the last 16 months. Vacancy jumped 60 bps to 9.8% (90 bps), the largest monthly increase since April 2013 and the highest rate in 13 months. Asking rents jumped $0.97 during February to $75.65 psf, but are still down 1.4% year-over-year and 0.9% from the five-year historical average.
Download the full January Midtown MarketBeat Report by clicking here or on the graphic above.
Midtown South’s new leasing activity reached 460,930 sf in February, bringing the year-to-date total to 929,475 sf leased -down 9.8% from one year ago. Vacancy increased 40 bps to 8.6%, exceeding 8% for two consecutive months for the first time since September/October 2014. The market hit its highest overall asking rent on record, closing February at $81.04 psf, up 16.7% year-over-year.
Download the full January Midtown South MarketBeat Report by clicking here or on the graphic above.
WeWork’s 201,251-sf lease at 199 Water Street accounted for 38.6% of Downtown leasing in February, as overall leasing activity in that market surpassed 2.1 msf year-to-date – more than triple the amount from this period in 2018. Downtown’s overall vacancy rate increased 20 bps in February to 10.7%, remaining 190 bps higher than one year ago. Asking rents increased in February by $0.32 to reach a record high of $63.97 psf, and up 6.9% over the past 12 months.
Download the full January Downtown MarketBeat Report by clicking here or on the graphic above.