Workplace leasing exercise in Manhattan was tepid in November, as total leasing quantity dipped to 2.13M SF, a drop of almost 18% from October’s whole of two.6M SF.
Driving the downturn in total quantity was a plunge in exercise within the Downtown submarket, which dropped to 108K SF from October’s whole of almost 776K SF. In keeping with Colliers’ new month-to-month snapshot for Manhattan workplace market.
Leasing exercise in Midtown and Midtown South truly notched modest will increase in November, rising to 1.09M SF and 938K SF, respectively, from October’s tallies of 985K SF and 835K SF.
In contrast to October, which noticed two separate offers of greater than 250K SF, the most important lease transactions in Manhattan in November have been a bit smaller: Denton’s 159K SF renewal at 1221 Avenue of the Americas; Palantir’s 140K SF renewal at 620 Avenue of the Americas, an area previously occupied by WeWork; and Ralph Lauren’s 133K SF renewal at 650 Madison Avenue.
The provision price of 17.9% matched September’s document excessive in Manhattan in November, whereas total internet absorption within the borough was destructive 500K SF, Colliers reported.
The year-to-date 2023 leasing whole of 23.7M SF in November is about 13% under the identical interval in 2022, guaranteeing that the overall for 2023 will fall wanting final yr’s tally.
Web sublet availability grew in November in Manhattan for the primary time since might, growing by 51K SF to twenty.75M SF. The typical asking lease in Manhattan dipped by 0.5% in November to $75.02 per SF, which is 5.6% decrease than the March 2020 common of $79.47 per SF.
The leasing quantity in Decrease Manhattan was the bottom month-to-month whole Downtown since February 2021, a mirrored image of the truth that demand within the submarket in October was primarily pushed by one transaction, the Metropolis of New York’s 538K SF lease at 150 William Avenue. The most important Downtown lease in November was Payoneer’s new 42K SF deal at 195 Broadway.
With a November leasing quantity whole of almost 940K SF, Midtown South notched its strongest tally since January, a 12.4% bounce in velocity from October. The November leasing whole in Midtown South jumped 62.3% in a year-over-year comparability; the overall additionally was 11.6% above the five-year rolling common of 840K SF.
The addition of the below-average priced sublet block at 155 Delancey Avenue, the elimination of above-average priced house leased to Quinn Emanuel at 295 Fifth Avenue and lower-repricing in Midtown South resulted within the asking lease common lowering by 0.1% in November to $81.67 per SF. Nevertheless, the common grew by 4.8% since March 2020.
