CBRE Report Finds Manhattan’s Availability Virtually Unchanged

Manhattan leasing activity totaled 2.04 million square feet in April, 7% below its five-year monthly average of 2.20 million sq. ft. The availability rate increased 20 basis points (bps) over the past month, and 10 bps from one year ago. Net absorption was negative 413,000 sq. ft. in April, bringing the year-to-date total to negative 2.04 million sq. ft. The average asking rent was virtually unchanged over the past month and up 7% from April 2015. Sublease availability was 1.8%, up 20 bps from last month and down 10 bps from one year ago.

Among the report’s highlights:

Midtown – Monthly leasing activity totaled 1.54 million sq. ft., 18% above its five-year monthly average of 1.31 million sq. ft. Year-to-date leasing activity is down 32% compared to the same period last year. The availability rate was virtually unchanged from last month and up 40 bps from one year ago. Net absorption was negative 58,000 sq. ft. in April, bringing the year-to-date total to a negative 1.73 million sq. ft. The average asking rent was virtually unchanged over the past month and up 6% from April 2015. Sublease availability was 1.8%, with an average asking rent of $63.86, up 3% year-over-year.

Midtown South – Monthly leasing activity totaled 265,000 sq. ft., 40% below its five-year monthly average of 440,000 sq. ft. Year-to-date leasing activity is on par with the same period last year, dipping just 2%. The availability rate increased 40 bps and is unchanged from one year ago. Net absorption was negative 276,000 sq. ft. in April, bringing the year-to-date total to negative 666,000 sq. ft. The average asking rent was virtually unchanged over the past month and up 3% from April 2015. Sublease availability was 2.1% with an average asking rent of $51.24, down 9% year-over-year.

Downtown – Monthly leasing activity totaled 236,000 sq. ft., 48% below its five-year monthly average of 455,000 sq. ft. Year-to-date leasing activity is down 14% compared to the same period last year. The availability rate increased 10 bps, but is down 90 bps from one year ago. Net absorption was negative 79,000 sq. ft. in April, bringing the year-to-date total to positive 363,000 sq. ft. The average asking was virtually unchanged over the past month and up slightly from the same period last year. Sublease availability was 1.5%, with an average asking rent of $45.02, up 3% year-over-year.