New York Market Overview
- Total Manhattan Class A Office vacancies stayed at 8.9 % vacant
- Total New York City Office vacancy decreased from 8.2 % vacant to 8.0 % vacant
Manhattan OfficeManhattan office leasing continued its slow start to the year, with demand in February down more than 18% from a year earlier. Two months into 2018, leasing activity is trending downward at a time when the pipeline is flush with new supply.
The market recorded 2.57 million square feet worth of new leases and renewals in February. That was down 18.3% from February last year, and continued the year-over-year decline recorded in January.
For the first two months of 2018, leasing activity stood at 5.54 million square feet, down 21.6% from the same time period last year.
Manhattan’s availability rate in February ticked up to 10.4%, its highest point since November 2016. Absorption was negative 1.21 million square feet. Manhattan’s average asking rent dropped .7% to $74.19 per square foot.
Fintech firms and units of larger companies accounted for roughly 877,000 square feet of Manhattan office leasing last year. Alphabet’s Google, Facebook and Amazon are growing larger in the city, and so are outposts of Silicon Valley-based companies Mastercard, , signed a lease last year for all 212,500 square feet at L&L Holding’s 150 Fifth Avenue, almost tripling the size of its current Midtown South technology hub at L&L’s 114 Fifth Avenue.
Total Manhattan Class A Office vacancies stayed at 8.9 % vacant
Manhattan RetailFebruary’s top 10 retail leases were slightly higher than January’s in terms of square footage.
The 10 biggest deals signed last month totaled 108,184 square feet, up 13,536 square feet from last month’s total of 94,648 square feet.