April 9, 2019
Manhattan’s office market vacancies rose into the double digits for the first time in 18 quarters, despite posting the second highest first-quarter leasing total on record, with nearly 8.3 million square feet of deals in 2019’s first three months, according to Cushman & Wakefield.
Accordingly, available sublease space increased to 7.9 million square feet during Q1. That reportedly represented the highest quarterly total since Q2 of 2010.
The strong leasing momentum overall was fueled by a spike Downtown, which recorded Q1’s three largest new leases and its best quarterly performance on record. In fact, Downtown was the only one of Manhattan’s three submarkets to register a year-over-year increase in leasing activity.
WeWork’s lease for 201,251 square feet at 199 Water St. was among Q1’s biggest deals, and coworking continued to impact the leasing market. However, coworking’s leasing volume represented a 12.7% Y-O-Y decline.
Connect New York is coming up on April 30! Click here to register for the event.
For comments, questions or concerns, please contact Paul Bubny