Manhattan Office Market Rebounds With Record Leasing Surge

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Manhattan’s office market is showing renewed strength, with major tenants driving a surge in activity. Deloitte, Guggenheim Partners and Salesforce led the way in the third quarter, pushing total leasing volume to 9.4 million square feet, 27 percent above the five-year average, according to Colliers. Year-to-date activity has already exceeded 30 million square feet, the strongest since 2002, and could surpass 40 million by year-end.

Deloitte’s 807,000-square-foot lease at 70 Hudson Yards was the largest of the quarter, followed by major renewals from Guggenheim and Salesforce. Availability has dropped to its lowest point ...

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Manhattan’s leasing is set to achieve its best performance since 2000

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Manhattan’s office leasing market continues its steady rebound. In April, tenants signed 3.38 million square feet of new leasesup 23% year over year—according to Colliers. While volume dipped from March, availability fell to 15.7%, the lowest since February 2021.

At this pace, leasing activity could hit 44.3 million square feet in 2025, the highest since 2000.

Despite economic headwinds, leasing activity is driven by tenants relocating and upgrading, signaling confidence in Manhattan’s long-term office outlook.

(source: The Real Deal, picture: Micheal Discenza)

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Office Deals? Yes, But Skip Midtown—3rd Costliest Globally

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Midtown is the most expensive office market in the U.S. and North America, ranking third globally behind London’s West End and Hong Kong, according to Savills.

Midtown Manhattan’s average net effective cost hit $206.67 per square foot, up 9% from last quarter, including rent, incentives, and fit-out expenses. London’s West End leads at $277.55, while Hong Kong dropped to $230.39.

Downtown Manhattan ranks fourth in the U.Sat $91.88 per square foot, with San Francisco and Century City in between. Nearly half of ...

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Investing Smart: Soho Property Sells for 43.75% More in Two Years

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A Manhattan retail space housing Cartier in Soho has just sold for 43.75% more than what the owner paid in 2022. An undisclosed Japanese conglomerate purchased 102 Greene Street from Aby Rosen’s RFR Holding for $46 million, equating to about $4,020 per square foot, with a capitalization rate of 4.2%.

The four-story building, dating back to 1881, was transformed by Cartier into a flagship location featuring a gallery, lounge, studios, and a rooftop garden and opened late last year. RFR had acquired ...

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Good signs for the Manhattan office market

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Last month, Manhattan’s office market surged, nearing pre-pandemic levels, led by robust leasing in Midtown. Nearly 2 million square feet were leased there, contributing to a total of 3 million square feet across all central business districts in May, a 70% increase from last year. Key transactions included Bloomberg’s large lease at 731 Lexington Avenue, the largest since 2019, and substantial leases at 22 Vanderbilt, highlighting market dynamics. These large deals significantly influenced market activity, but despite challenges, the market shows signs ...

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Office space in Manhattan reaches all-time high

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The office market continues to struggle as available office space reaches a record high in the second quarter. According to Savills, there were 70.3 million square feet of office space ready for leasing, accounting for 19.7 percent of total space, the highest since the start of the pandemic. Leasing activity dropped by 12.1 percent in the first half of the year compared to 2022, and the second quarter saw a significant decrease of 25.2 percent compared to pre-pandemic levels. Lease renewals and expansions ...

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