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Lower Manhattan Office Market Leasing Activity Spikes in September

Lower Manhattan Office Market Leasing Activity Spikes in September


CBRE is reporting this week that Manhattan's office leasing activity totaled 2.26 million square feet in September 2015, 2% above its five-year monthly average of 2.20 million sq. ft. The availability rate decreased 30 basis points (bps) over the past month and 60 bps from one year ago Year-to-date net absorption remains negative, but improved by 813,000 sq. ft. in September. The average asking rent increased by $0.46 over the past month and is up 6% from the same period last year. Sublease availability is 1.7%, its lowest level since the beginning of 2008.
 
Manhattan office market highlights include:

Midtown - September leasing activity totaled 1.24 million sq. ft., 7% below its five-year monthly average of 1.33 million sq. ft. Year-to-date leasing activity totaled 13.66 million sq. ft., up 8% compared to the same period last year. The availability rate decreased 20 basis points (bps) over the past month and is down 60 bps from one year ago. Year-to-date net absorption remains negative, but improved by 323,000 sq. ft. in September. The average asking rent decreased by $0.82 over the past month and is up 4% from September 2014. Sublease availability stands at 1.8%, with an average asking rent of $63.37, up 9% year-over-year.

Midtown South - Leasing activity totaled 547,000 sq. ft. in September, 24% above its five-year monthly average of 440,000 sq. ft. Year-to-date leasing activity totaled 4.52 million sq. ft., down 12% compared to the same period last year. The availability rate decreased 30 basis points (bps) over the past month and is down 150 bps from one year ago. Year-to-date net absorption remains positive, and improved by 150,000 sq. ft. in September. The average asking rent decreased by $0.98 over the past month, but is up 6% from September 2014. Sublease availability is 1.6%, with an average asking rent of $54.97, up 2% year-over-year.

Downtown - Leasing activity totaled 473,000 sq. ft. in September, 7% above its five-year monthly average of 444,000 sq. ft. Year-to-date leasing activity totaled 3.39 million sq. ft., down 34% compared to the same period last year. The availability rate decreased 40 basis points (bps) over the past month and is up 20 bps from one year ago. Year-to-date net absorption remains negative, but improved by 340,000 sq. ft. in September. The average asking rent increased by $0.35 over the past month and is up 12% from September 2014. Sublease availability stands at 1.4%, with an average asking rent of $45.03, up 18% year-over-year.             
 
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