Office leasing in Manhattan, New York, accelerated in July, signaling continued strength in the market as demand outpaced historical averages and available space continued to shrink, according to a new CBRE report.
Leasing activity reached 2.98 million square feet during the month, 39% above the five-year monthly average. Year-to-date leasing totaled 17.87 million square feet, up 2% from the same period last year.
The office availability rate fell to 14.0% in July, down 40 basis points from June and 320 basis points lower than a year ago.
The market also recorded 1.5 million square feet of positive net absorption during the month, bringing the year-to-date total to 6.58 million square feet, indicating that more office space continues to be occupied than vacated.
Rents Hold Steady
Average asking rents remained stable at $80.20 per square foot, essentially unchanged from June but 4% higher than a year earlier.
The sublease market also tightened, with the sublease availability rate declining to 2.4%. Average sublease asking rents were flat year over year at $58.74 per square foot.
Renewal activity remained active as well, totaling 427,000 square feet in July and 6.36 million square feet so far this year, suggesting many companies continue to renew existing office space rather than relocate.
