October 9, 2018
Manhattan office leasing activity totaled 6.73 million square feet in the third quarter, 3% behind its five-year quarterly average, while year-to-date leasing activity totaled 22.09 million square feet, 5% higher than the same period last year. The availability rate during Q3 was 11.7%, down 10 basis points from Q2 and unchanged from a year ago.
“One of the big stories from the third quarter was the continuing leasing momentum among flexible space providers, who were a major driver of activity last quarter,” said CBRE’s Nicole LaRusso. “In Midtown South, WeWork accounted for four out of the five largest deals during the quarter.”
In Midtown, she added, leasing activity exceeded four million square feet for the sixth consecutive quarter. “This puts Midtown’s year-to-date leasing at its highest level since 2006.”
Conversely, the availability rates for both Midtown South and Downtown were up 10 bps from the previous quarter, according to CBRE.
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