The availability rate for office space in Manhattan rose for the 11th consecutive month in April to a record 16.5%, according to Colliers International. Availability above 10% on the island is considered a renter’s market.
Leasing activity in Manhattan decreased 46% from March and was 75% lower from the monthly average in the banner year of 2019, suggesting the market still has a long way to recover.
In a sign of a market potentially on the mend, available sublet space, now representing almost 24% of all available space, fell for the first time since May 2020. When sublet space surpasses 25% of all available space, it is considered a glut.
“It’s difficult to draw any long-term trends with one month of data,” said Frank Wallach, senior research director in New York at Colliers. “April began to show early inklings of a possible thaw in the wave of sublet space.”
Despite the glimmer of an uptick, other data showed a market still in the grip of the pandemic.
The average asking rent in Manhattan decreased 0.4% to $72.97 a square foot, the lowest since December 2017. Since the downturn began in March 2020, the average has fallen by 8.2%.
Only one lease was for more than 100,000 square feet, a transaction for 109,000 square feet (10,126 square meters) leased by software company Schrödinger’s at 1540 Broadway.
Source: Economy - investing.com
