New York Market OverviewTotal Manhattan office leasing activity was up 2.9% from last year, reaching 42.97 million square feet and up 28.4% above the ten-year average. Average asking rents dipped slightly to $78.75 at the end of the year, following a few large above-market deals.
Midtown South had 16.41 million square feet in leasing activity, a 14.5% increase from 2019. With an overall average asking rent of $76.70.
Midtown office leasing hit a new all-year high with 2,750,000 square feet in leases signed, up 58% year-over-year. Availability rate of 11.3%, with base rent average fell by nearly $2 to $87.003. Facebook’s 1.5 million-square-foot lease across three buildings at Hudson Yards accounted for more than half of all Midtown space leased.
Midtown South saw a total of 430,000 square feet in leases signed, down 38% year-over-year. The availability rate rose to 9.8% and the average asking rent fell to $83.67 per square foot.
Downtown leasing volume increased almost 70% year-over-year, totalling 10.7 million square feet the highest total this century, surpassing 2000’s total of 10.04 million square feet. Asking rents rose to $64.60 per square foot. The largest deal in this submarket, and citywide, went to the investment bank Morgan Stanley, which renewed its 1.25 million-square-foot lease at 1 New York Plaza.
The top 10 office leases comes to 945,500 square feet:
- Amazon signed a lease at 410 Tenth Avenue for 335,000 square feet. The landlord is Newmark Knight Frank.
- Akerman signed a lease at 1251 Sixth Avenue for 100,000 square feet. The landlord is Mitsui Fudosan America.
- Mazars USA signed a lease at 135 West 50th Street for 90,000 square feet. The landlord is George Comfort & Sons.
- Strategic Financial Solutions signed a lease at 711 Third Avenue for 82,557 square feet. The landlord is SL Green Realty.
- Cozen O’Connor signed a lease at 3 World Trade Center for 77,000 square feet. The landlord is Silverstein Properties.
- 29Rooms signed a lease at 25 Kent Avenue for 64,900 square feet. The landlords are Rubenstein Partners and Heritage Equities Partners.
- Kith signed a lease at 25 Kent Avenue for 58,000 square feet.
- Squarespace signed a lease at 225 Varick Street for 50,000 square feet. The landlords are Trinity Real Estate, Norges Bank Real Estate Management and Hines.
- Greenberg Traurig signed a lease at 420 Lexington Avenue for 46,744 square feet. The landlord is SL Green Realty.
- Next Jump signed a lease at 512 West 22nd Street for 41,300 square feet. The landlord is Vornado Realty Trust.
- Lack of demand caused a 8.8% drop in asking retail rents in the fourth quarter of 2019 in Manhattan’s 16 biggest retail corridors.
- The 10 biggest retail leases totaled 290,200 square feet, up 120,500 square feet from last month’s total of 169,700 square feet.
- Best Buy signed a lease at 535 Fifth Avenue for 40,839 square feet. The landlord is the Moinian Group.
- Citizens signed a lease at 5 Manhattan West for 40,000 square feet. The landlord is Brookfield Property Partners.
- RAD Entertainment Group signed a 20 year lease at 1515 Broadway for 39,436 square feet. The landlord is SL Green Realty.
- Target signed a lease at 3-50 Saint Nicholas Avenue for 33,000 square feet. The landlord is AB Capstone.
- Target signed a lease at 233 West 42nd Street for 32,942 square feet. The landlord is Tishman Speyer.
- M&M’s World signed a lease at 1600 Broadway for 30,000 square feet. The landlord is Sherwood Equities.
- Olive Garden signed a lease at 2 Times Square for 20,000 square feet. The landlord is Sherwood Equities.
- Yard House signed a lease at 10 Times Square for 19,000 square feet. The landlord is L.H. Charney Associates.
- Riad Nasr & Lee Hanson signed a lease at 45 Rockefeller Plaza for 18,000 square feet. The landlord is Tishman Speyer.
- Trader Joe’s signed a lease at 22-43 Jackson Avenue, Long Island City for 17,000 square feet. The building is being developed by Circle F Capital.