CBRE Group, Inc. issues June 2016 Manhattan Office Marketview Snapshot

New York, NY Manhattan leasing activity totaled 1.4 million s/f in May, 36% below its five-year monthly average of 2.18 million s/f. The availability rate was unchanged over the past month and up 40 basis points (bps) from one year ago. Net absorption was negative 371,000 s/f in May, bringing the year-to-date total to negative 2.41 million s/f. The average asking rent was virtually unchanged over the past month and up 6% from May 2015. Sublease availability was 1.8%, unchanged over the past month and from one year ago. Among the report’s highlights: Midtown – Monthly leasing activity totaled 957,000 sq. ft., 26% below its five-year monthly average of 1.30 million s/f. Year-to-date leasing activity is down 34% compared to the same period last year. The availability rate was unchanged from last month and up 80 bps from one year ago. Net absorption was negative 111,000 s/f in May, bringing the year-to-date total to negative 1.85 million s/f. The average asking rent was virtually unchanged over the past month and up 5% from May 2015. Sublease availability was 1.8%, with an average asking rent of $63.88, up 5% year-over-year. Midtown South – Monthly leasing activity totaled 221,000 s/f, 49% below its five-year monthly average of 436,000 s/f. Year-to-date leasing activity is down 17% compared to the same period last year. The availability rate increased 10 bps and is unchanged from one year ago. Net absorption was negative 71,000 s/f in May, bringing the year-to-date total to negative 737,000 s/f. The average asking rent was virtually unchanged over the past month and up 2% from May 2015. Sublease availability was 2.2%, with an average asking rent of $52.93, down 14% year-over-year. Downtown – Monthly leasing activity totaled 221,000 s/f, 51% below its five-year monthly average of 452,000 s/f. Year-to-date leasing activity is down 12% compared to the same period last year. The availability rate increased 20 bps, but is down 30 bps from one year ago. Net absorption was negative 190,000 s/f in May, bringing the year-to-date total to a positive 173,000 s/f. The average asking rent was virtually unchanged over the past month and up slightly from the same period last year. Sublease availability was 1.6%, with an average asking rent of $46.44, up 6% year-over-year.