April 11, 2019
Manhattan’s office leasing market looks “strong and healthy” despite a modest slowdown in overall leasing activity, said Nicole LaRusso, director of research and analysis for CBRE Tri-State. The 6.94 million square feet of first-quarter leasing was off 2% from the five-year quarterly average, although asking rents were up 8% from a year ago.
“Tenant demand remains high, with several large leases either completed or set to close during the second quarter,” LaRusso said. “With a solid pipeline of active tenant requirements, we expect leasing totals to pick up later in the year.”
Even as Midtown saw the strongest quarterly rent growth, Downtown has been a standout, “with strong activity from tech firms and other creative companies, many of whom are getting priced out of Midtown and Midtown South,” said LaRusso. “These firms continue to find not just value, but the quality space and amenities they need to grow and attract talent.”
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