July 2, 2020
Manhattan leasing volume dropped by more than one-half, quarter-over-quarter, according to Colliers International’s most recent quarterly report. At 3.18 million square feet, second-quarter leasing was also 71.5% below Q2 2019’s volume of 11.19 million square feet. Q2 of 2020 was Manhattan’s lowest period of leasing activity since 2009.
“Without a doubt, the second quarter of 2020 ranked as one of the most challenging periods in the history of the Manhattan office market,” said Franklin Wallach, senior managing director, Colliers International New York Research. “The COVID-19 pandemic and the resulting record-high unemployment rate led to a significant drop in leasing volume while supply increased.”
He added, though, that Manhattan’s asking rent average was “resilient with only a slight decrease, while sublet supply has so far held firm. Nonetheless, any prolonged effects of the pandemic on the office market will be revealed over the next several quarters.”
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