Manhattan Office Leasing Activity Jumps in February

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CBRE is reporting this week that Manhattan's office leasing activity totaled 2.28 million square feet in February, 3% above its five-year monthly average of 2.21 million sq. ft. The availability rate fell 10 basis points (bps) over the past month, and 40 bps from one year ago. Year-to-date net absorption is negative, but improved by 526,000 sq. ft. in February. The average asking rent is virtually unchanged over the past month and is up 6% from February 2015. Sublease availability fell to 1.6%, its lowest level since 2008.

Midtown Market
 
Monthly leasing activity totaled 1.44 million sq. ft., 10% above its five-year monthly average of 1.31 million sq. ft. Year-to-date leasing activity is down 26% compared to the same period last year. The availability rate decreased 10 basis points (bps) over the past month and is unchanged from one year ago. Year-to-date net absorption is negative, but improved by 49,000 sq. ft. in February. The average asking rent is virtually unchanged from the past month and is up 6% from February 2015. Sublease availability is currently 1.7% with an average asking rent of $59.68, essentially unchanged year-over-year.
 
Midtown South Market
 
Monthly leasing activity totaled 540,000 sq. ft., 22% above its five-year monthly average of 443,000 sq. ft. Year-to-date leasing activity is down 30% compared to the same period last year. The availability rate decreased 10 basis points (bps) over the past month and 60 bps from one year ago. Year-to-date net absorption is negative, but improved by 69,000 sq. ft. in February. The average asking rent dipped slightly, as a large block of premium-priced space was leased and additional sublet space came to market. Sublease availability is 1.5%, with an average asking rent of $52.53, down 2% over the past year.
 
Downtown Market
 
Monthly leasing activity totaled 302,000 sq. ft., 34% below its five-year monthly average of 461,000 sq. ft. Year-to-date leasing activity is down 11% compared to the same period last year. The availability rate decreased 50 basis points (bps) over the past month and 130 bps from one year ago. Year-to-date net absorption is positive and increased by 408,000 sq. ft. in February. The average asking rent is virtually unchanged from the past month, but is up 3% from February 2015. Sublease availability currently stands at 1.4%, with an average asking rent of $45.43, up 12% year-over-year.