Following the dynamic leasing pace of the first half of the year, Manhattan new leasing slowed in the third quarter with nearly 7.3 million square feet (msf)
transacted. The limited demand was driven by a reduction in Midtown leasing, which registered the lowest quarterly total in more than six years. Year-todate leasing totaled 25.6 msf, down a slight 0.5% from one year ago. Overall vacancy increased modestly during the quarter, up just 10 basis points (bps) to 10.6% but higher than the 9.5% registered one year ago. Sublease space climbed by 12.2% in the third quarter to nearly 9.8 msf and jumped by 46.3% this year with nearly 3.1 msf added since 2018. Overall year-to-date absorption remained negative for the third consecutive quarter at 2.2 msf, while direct
absorption registered positive 1.6 msf, as direct vacant space declined by 2.4%. The Manhattan overall asking rent fell by $0.25 per square foot (psf) during the quarter to $73.91, even though asking rents in 12 of the 20 Manhattan submarkets increased—with Hudson Square/West Village, City Hall and Insurance reaching all-time quarterly highs.