The Manhattan office leasing market posted a strong, positive first quarter as nearly 8.3 million square feet of new leasing occurred—a 16.6% increase from Q1 2018. Downtown led the market with its strongest first quarter on record, with 2.6 msf leased, up 215% YOY. Similarly, total employment reached a new all-time high, hitting 4.61 million jobs in February. Despite the positive leasing activity, Manhattan vacancy jumped 100 bps in the first quarter to 10.2%—and exceeded 10.0% for the first time in 18 quarters. Manhattan sublease supply increased as well, surpassing 7.9 msf in Q1 2019.
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