Manhattan Office Leasing Activity Dives in November

Net absorption was negative 693,000 sq. ft. in November, bringing the year-to-date total to negative 4.32 million sq. ft. The average asking rent was virtually unchanged over the past month and up 3% from November 2015. Sublease availability was 2.1%, unchanged from the past month and up 40 bps from one year ago.
 
CBRE's report highlights include:
 
Midtown - Monthly leasing activity totaled 1.07 million sq. ft., 17% below its five-year monthly average of 1.30 million sq. ft. Year-to-date leasing activity is down 15% compared to the same period last year. The availability rate was virtually unchanged from last month and up 100 bps from one year ago. Net absorption was positive 58,000 sq. ft. in November, bringing the year-to-date total to negative 2.64 million sq. ft. The average asking rent declined slightly over the past month and rose 3% from November 2015. Sublease availability was 2.2%, with an average asking rent of $65.72, up 12% year-over-year.
 
Midtown South - Monthly leasing activity totaled 349,000 sq. ft., 18% below its five-year monthly average of 426,000 sq. ft. Year-to-date leasing activity is down 25% compared to the same period last year. The availability rate was up 60 bps from last month and 200 bps from one year ago. Net absorption was negative 432,000 sq. ft. in November, bringing the year-to-date total to negative 1.66 million sq. ft. The average asking rent decreased slightly over the past month and dropped 3% from November 2015. Sublease availability was 2.7%, with an average asking rent of $55.49, down 2% year-over-year.
 
Downtown - Monthly leasing activity totaled 91,000 sq. ft., 78% below its five-year monthly average of 419,000 sq. ft. Year-to-date leasing activity is down 23% compared to the same period last year. The availability rate was up 30 bps from last month and 10 bps from one year ago. Net absorption was negative 319,000 sq. ft. in November, bringing the year-to-date total to negative 16,000 sq. ft. The average asking rent was virtually unchanged from last month and up 3% from one year ago. Sublease availability was 1.6%, with an average asking rent of $44.98, down 3% year-over-year.