January 7, 2019
Manhattan’s office leasing volume reached 32.4 million square feet in 2018, the highest annual tally since 2000’s level of 33.1 million square feet, CBRE reported. It surpassed the 10-year average of 25.8 million square feet by 26%.
CBRE’s Nicole LaRusso cited two key factors driving the 18-year high in office leasing. The first was business growth, with a concomitant increase in office-using employment.
The second was the availability of large blocks of space in both new construction and newly-renovated product, leading to large-scale corporate relocations. These have included Pfizer’s move to new construction at 66 Hudson Blvd., Peloton’s growth into the redeveloped 441 Ninth Ave. (pictured) and Latham & Watkins’ move to the renovated 1271 Ave. of the Americas.
While financial services took the largest share of 2018 leasing volume, the coworking sector surged to 18% of the year’s total. Historically, coworking has represented 2% to 4% of volume.
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