The Manhattan office market had nearly 8.3 million square feet (msf) of new leases transacted through the first quarter of 2019, making it the second-highest Q1 leasing total on record. The three largest new leases of the quarter were all in the Downtown market.
Despite healthy leasing activity, vacancy in Q1 increased by 100 basis points (bps) to 10.2%. Available sublease space reached its highest quarterly total since Q2 2010, increasing to 7.9 msf. Overall, asking rents in Manhattan reached an eight-quarter high of $73.28 behind a $1.00 per square foot (psf) increase.
Download the full Q1 Manhattan MarketBeat Report by clicking here or on the graphic to the right.
In Midtown new leasing activity finished the first quarter with nearly 4.5 msf leased, 8.8% behind 2018’s record pace. Vacancy had its highest quarterly increase since Q2 2009, jumping 80 bps to 10.1% in Q1. The largest space addition came from 178,285 sf at 1114 Avenue of the Americas. Asking rents reached $75.42, an increase of $0.39 psf, but remain 2.1% below the $77.06 psf average of Q1 2018.
Download the full Q1 Midtown MarketBeat Report by clicking here or on the graphic above.
Midtown South’s Q1 new leasing activity (totaling nearly 1.2 msf) decreased 11.6% year-over-year, as only two new leases of over 50,000 sf were signed compared to four in 2018. Vacancy soared to 9.3%, up 210 bps, mainly due to 593,653 sf becoming available at 63 Madison Avenue and 620 Avenue of the Americas. Overall asking rents reached the highest quarterly rent on record at $80.62 psf, a 4.9% increase quarter-over-quarter.
Download the full Q1 Midtown South MarketBeat Report by clicking here or on the graphic above.
NYC Health and Hospitals Corporation’s (HHC)526,552-sf lease at 7 Hanover Square was the largest deal of Q1, and led a Downtown total of 2.6 msf in leasing activity. That quarterly figure is already just under the mid-year 2018 total. Despite this, vacancy increased by 20 bps in Q1 to 11.0% with 280,343 sf becoming available at 110 William Street. Downtown asking rents are up 6.0% YOY at $63.27 psf.
Download the full Q1 Downtown MarketBeat Report by clicking here or on the graphic above.