October 12, 2020
Downtown leasing velocity slowed dramatically in the third quarter, recording just 521,705 square feet of leasing activity and a 49.2% drop from Q2, Newmark Knight Frank reported. Additionally, Downtown activity declined as other markets saw an improvement, with an upswing in renewals and short-term extensions driving Midtown and Midtown South in particular.
However, NKF says Downtown trended differently, as relocations drove more than 90% of square footage leased. Capco signed the quarter’s sole renewal over 10,000 square feet; the consulting firm renewed its 48,700-square-foot office at 77 Water St. in September.
Year to date, relocations accounted for 74.8% of Downtown’s activity, compared to a 62.5% share in Manhattan overall.
On the other hand, while Downtown’s availability rate rose by 170 basis points, its biggest quarterly increase since Q4 2001, it rose less sharply than in Midtown and Midtown South, where availability rose 210 and 270 bps, respectively.
Pictured: 77 Water St., where Downtown’s largest renewal of Q3 was signed.
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