CBRE Group issues March 2016 Manhattan Office Marketview Snapshot

New York, NY Manhattan leasing activity totaled 2.28 million s/f in February, 3% above its five-year monthly average of 2.21 million s/f. The availability rate fell 10 basis points (bps) over the past month, and 40 bps from one year ago. Year-to-date net absorption is negative, but improved by 526,000 sq. ft. in February. The average asking rent is virtually unchanged over the past month and is up 6% from February 2015. Sublease availability fell to 1.6%, its lowest level since 2008. Among the report’s highlights: Midtown – Monthly leasing activity totaled 1.44 million s/f, 10% above its five-year monthly average of 1.31 million s/f. Year-to-date leasing activity is down 26% compared to the same period last year. The availability rate decreased 10 basis points (bps) over the past month and is unchanged from one year ago. Year-to-date net absorption is negative, but improved by 49,000 s/f in February. The average asking rent is virtually unchanged from the past month and is up 6% from February 2015. Sublease availability is currently 1.7% with an average asking rent of $59.68, essentially unchanged year-over-year. Midtown South – Monthly leasing activity totaled 540,000 s/f, 22% above its five-year monthly average of 443,000 s/f. Year-to-date leasing activity is down 30% compared to the same period last year. The availability rate decreased 10 basis points (bps) over the past month and 60 bps from one year ago. Year-to-date net absorption is negative, but improved by 69,000 s/f in February. The average asking rent dipped slightly, as a large block of premium-priced space was leased and additional sublet space came to market. Sublease availability is 1.5%, with an average asking rent of $52.53, down 2% over the past year. Downtown – Monthly leasing activity totaled 302,000 s/f, 34% below its five-year monthly average of 461,000 s/f. Year-to-date leasing activity is down 11% compared to the same period last year. The availability rate decreased 50 basis points (bps) over the past month and 130 bps from one year ago. Year-to-date net absorption is positive and increased by 408,000 s/f in February. The average asking rent is virtually unchanged from the past month, but is up 3% from February 2015. Sublease availability currently stands at 1.4%, with an average asking rent of $45.43, up 12% year-over-year.