January 5, 2017
Manhattan leasing activity is now at its lowest levels since 2009. Uncertainty in politics and the economy both weighed on the market for office space in 2016. Tenants who completed transactions often chose to stay in place, with renewals accounting for five of the top ten leases.
The new year should bring an increase in leasing volume, with several large leases on track to close in the first half of the year.
Midtown’s Class A vacancy rate decreased for only the second time all year in December. For most of 2016, new construction and returned space outweighed lighter activity in the market, resulting in an overall submarket Class A rate bump of 1.4 percent compared to 2015.