January 20, 2017
Midtown was the leading neighborhood in Manhattan for new leases on office space in 2016.
In all of Manhattan, office tenants signed new leases totaling 26.3 million square feet in 2016. Midtown accounted for almost all of that, with net absorption of 22 million square feet.
“This year slightly surpassed the 10-year average for new leasing,” said Richard Bernstein, executive vice chairman for Cushman & Wakefield, who led the team that secured a 631,025-square-foot renewal and expansion lease for Penguin Random House at 1745 Broadway. “There’s a cautious optimism that the market will continue to grow in 2017.”
Vacancy rates keep rising as new office buildings open, despite all of the new leases that are getting signed. Midtown’s vacancy rate ended the year at 9.6%, Midtown South’s at 6.7%. Overall, Manhattan’s vacancy rate rose to 9.3%, up 0.8% from the year before.
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