Share:

Manhattan Office MarketBeats: May 2019

Richard Persichetti • 11/6/2019
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.

Manhattan

The Manhattan office market had nearly 2.7 million square feet (msf) of new leases transacted through May 2019, led by two deals by WeWork and Knotel in Midtown South and Downtown, respectively.

Vacancy increased for the fifth consecutive month with an average of 1.1 msf of space added per month. In May, the Manhattan overall vacancy rate inched up 40 basis points to 10.6%, as sublease space increased to 8.7 msf – the highest amount since July 2010.

Overall asking rents reached an all-time high of $74.46, an $1.61 psf increase, due to new construction in Midtown South.

Download the full Manhattan MarketBeat Report by clicking here or on the graphic to the right.

Midtown

In Midtown new leasing activity totaled 8.6 msf, the second-highest total on record through May, but down 4.1% year-over-year. Overall vacancy increased for the fifth-straight month, up 40 bps in May to 10.6%, as available sublease space reached 5.4 msf, up 52.1% year-over-year and Class A vacancy jumped 40 bps to 10.1% due to more than 200,00 sf of space coming to market at 375 Park Avenue. Overall asking rents increased $1.94 month-over-month to $77.18 psf, but are still down 0.3% year-over-year.

Download the full Midtown MarketBeat Report by clicking here or on the graphic above.


 

Midtown South

Midtown South’s new leasing activity reached 793,408 sf in May, bringing 2019’s total to nearly 2.6 msf leased – up 5.1% from one year ago. Vacancy increased 10 bps to 9.1%, but the uptick was offset by new demand stemming from three large blocks leased, each greater than 50,000 sf. Overall asking rents rebounded to $82.97 after dropping below $80.00 psf in April, as space in newly-constructed or repositioned assets entered the market.

Download the full Midtown South MarketBeat Report by clicking here or on the graphic above.


 

Downtown

span>

Downtown’s year-to-date new leasing activity increased by 546,986 sf in May to 3.6 msf, up 53.2% year-over-year. Contributing to the uptick, Knotel signed an 80,650-sf lease at 110 William Street. Despite strong leasing activity, the Downtown vacancy rate expanded 70 bps to 11.8%, including a total of 301,513 sf between 225 Liberty Street and 250 Vesey Street. Asking rents dropped only $0.04 psf to $62.84, still 5.9% higher than one year ago.

Download the full Downtown MarketBeat Report by clicking here or on the graphic above.

RELATED INSIGHTS

Dallas Skyline at Dusk
Article • Office

DALLAS - Corporate Migration to Texas

Corporate relocations and migrations to Texas have been a trend that many hear about, but why are they happening? What are the benefits of making such a large and sometimes costly decision to relocate a business and employees halfway across the country? Other than Texans’ friendly and welcoming demeanor, there are a number of other significant drivers. Below is a comparison of the 10 largest metropolitan areas in the U.S. (sorted largest to smallest).
Travis Boothe • 11/30/2020
Florida Sublease Office Market
Research • Office

Florida Office Sublease Market Report Q3 2020

Florida has experienced a 22% increase in vacant sublease space since the Covid-19 pandemic shocked the economy in March. 
Chris Owen • 11/19/2020
Q3 2020 Industrial Rent Cost Report
Research • Industrial

Florida Industrial Rent Cost Report Q3 2020

The COVID-19 turbo charged many industrial markets as e-commerce as well as firms tied to logistics and delivery expanded to service customers forced to stay home due to lockdowns.
Chris Owen • 11/9/2020

CAN'T FIND WHAT YOU'RE LOOKING FOR?

We’re on hand to help. Get in touch and we can help with any additional information you need.