Manhattan’s office sector has reached a pandemic-era high for leasing following years of struggles to recover from the losses of the last few years.
A Colliers report shows that leasing activity grew 42% from June and 35% from July of 2021. Additionally, absorption rates grew as more leases were signed than spaces were built or sublet.
While Manhattan’s leasing volume in July was still 11.6% less than its 2019 average, this growth shows that activity is starting to pick up.
Since March of 2020, office availability grew 70% in Manhattan, with asking rents taking a hit. Last month, asking rents slightly fell to $75.43 per square foot compared to June, but was still higher than the year prior.
This marks a slightly optimistic turn for Manhattan’s office market, which has struggled with high vacancy rates, particularly among lower class buildings.