New York City Office Market Delivers Positive Leasing Results in Q3

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According to CBRE's New York City Office MarketView for the third quarter 2015, there was increased annual office leasing activity across most New York submarkets.
 
CBRE reported the following office market highlights for each submarket in Q3:
 
Midtown - Leasing activity totaled 3.64 million sq. ft. in Q3 2015, 9% below its five-year quarterly average. Year-to-date leasing activity totaled 13.66 million sq. ft., up 8% compared to the same period last year. The availability rate fell 30 basis points (bps) over the past three months and 60 bps from one year ago. Year-to-date net absorption remains negative, but improved by 642,000 sq. ft. during the quarter. The average asking rent increased $0.14 and is up 4% from Q3 2014. Sublease availability fell 30 bps to 1.8% quarter-over-quarter, with an average asking rent that increased 3% over the same period to $63.37.
 
Midtown South - Leasing activity totaled 1.48 million sq. ft. in Q3 2015, 13% above its five-year quarterly average. Year-to-date leasing activity totaled 4.52 million sq. ft., down 12% compared to the same period last year. The availability rate fell 30 basis points (bps) over the past three months and 150 bps from one year ago. Year-to-date net absorption remains positive and improved by 214,000 sq. ft. during the quarter. The average asking rent increased by $0.50 and is up 6% from Q3 2014. Sublease availability rose by 30 bps to 1.6% quarter-over-quarter, with an average asking rent that fell 9% over the same period to $54.97.
 
Downtown - Leasing activity totaled 1.38 million sq. ft. in Q3 2015, 5% above its five-year quarterly average. Year-to-date leasing activity totaled 3.39 million sq. ft., down 34% from the same period last year. The availability rate fell 10 basis points (bps) over the quarter, but is up 20 bps from one year ago. Year-to-date net absorption remains negative, but improved by 149,000 sq. ft. during the quarter. The average asking rent decreased by $0.51 over the quarter, but is up 12% from Q3 2014. Sublease availability rose 10 bps to 1.4% quarter-over-quarter, with an average asking rent that rose 2% over the same period to $45.03.
 
Brooklyn - The Relocation and Employment Assistance Program (REAP) was extended through June 30, 2017. Tishman Speyer Properties announced plans to acquire its first Brooklyn property--paying $270 million to develop 10 office floors at 422 Fulton Street. Brooklyn Islanders begin their inaugural season at the Barclays Center. JDS Development and the Chetrit Group are planning to construct a residential tower at 340 Flatbush Avenue Extension--which, at more than 1,000 feet, would become the borough's tallest building. One15 Brooklyn Bridge Marina, in Brooklyn Bridge Park, is slated to open in the spring of 2016--it will be the first new marina built in New York Harbor in 20 years.