Manhattan Office Rental Activity Recovered In Jan

USA – Data from Colliers International showed that office lettings in Manhattan recovered in January, but it’s still lacklustre when compared to pre-pandemic levels, reported the New York Business Journal on Monday (1 February).

Office leasing in the borough reached 1.9 million sq ft last month. It’s 19 percent higher compared to December and the greatest level since July 2020. However, it’s nearly 50 percent lower versus the 3.56 million sq ft occupied in January 2019.

In addition, Manhattan’s office availability rate hit around 15 percent, which marks the 8th consecutive monthly increase. Net sublet availability also rose as well by 450,000 sq ft, although it’s the smallest monthly gain since last June.

However, the average asking office rent there dipped by 1 percent in January on a monthly basis to S$73.65, the lowest rate since April 2018.

The biggest transaction during the period was Spirit maker Beam Suntory’s commitment to lease
100,000 sq ft at 11 Madison Avenue in Midtown South, followed by Freshly’s 92,000 sq ft lease in 28 E. 28th Street in the same market segment. Third is the State of New York’s agreement to take up 65,000 sq ft at 199 Church Street in Downtown.

By market segment, Midtown recorded 1.35 million sq ft of new leases in January, up 78 percent month-on-month but down 23 percent since January 2019.

410,000 sq ft of office space was taken up in Midtown South, while Downtown saw 140,000 sq ft of new leases. The latter translates to a 72 percent month-on-month decline and 84 percent plunge compared to the same period 2 year ago.