US: Manhattan's Q3 Office Leasing Activity Falls Behind Amid Cautious Market Sentiment



Explore the latest data from CBRE's Q3 2023 report, highlighting a decline in Manhattan's office leasing activity amid cautious market sentiment. Gain insights on the availability rate and market trends.

A-2

According to the latest data from CBRE's Q3 2023 report, Manhattan's office marketexperienced some positive absorption during the third quarter, resulting in a decline in the availability rate. However, the leasing activity in the area remains relatively low, reflecting a cautious market sentiment.


US: Manhattan's Q3 Office Leasing Activity Falls Behind Amid Cautious Market Sentiment | ogusyis

In Q3, the total office leasing activity in Manhattan was 4.30 million square feet, which is considerably below the five-year quarterly average of 5.54 million square feet. Although the availability rate decreased by 10 basis points from the previous quarter to 19.8%, it increased by 100 basis points compared to the same period last year. The net absorption was positive at 323,000 square feet, bringing the year-to-date total to negative 2.42 million square feet. Furthermore, the year-to-date leasing activity stood at 12.55 million square feet, representing a 33% decline compared to the previous year.

Given the economic uncertainty, renewals dominated the market once again during Q3, totaling 1.66 million square feet. This brings the year-to-date total for renewals to 4.44 million square feet. As for the average asking rent, it stood at $76.38 per square foot, showing a 1% decrease quarter-over-quarter but remaining flat year-over-year. In terms of sublease availability, the rate declined by 20 basis points from the previous quarter to 4.9%. The average asking rent for sublease spaces also dropped by 4% compared to the previous year, amounting to $56.56 per square foot.

Moving on to Midtown Manhattan, the availability rate decreased by 40 basis points from the previous quarter, reaching 18.1%. However, it increased by 70 basis points compared to the same period last year. The net absorption in Q3 was positive with 867,000 square feet, bringing the year-to-date total to positive 329,000 square feet. Leasing activity during the third quarter amounted to 2.87 million square feet, which is 16% below the five-year quarterly average of 3.40 million square feet. Year-to-date leasing also witnessed a decline of 35% compared to the previous year, totaling 7.92 million square feet. The average asking rent in Midtown Manhattan remained flat both quarter-over-quarter and year-over-year at $82.68 per square foot. Additionally, renewals accounted for 1.27 million square feet in Q3, bringing the year-to-date total to 2.86 million square feet. The sublease availability rate experienced a 20-basis point decrease from the previous quarter, amounting to 4.3%. Meanwhile, the average asking rent for sublease spaces declined by 6% compared to the same period last year, reaching $59.74 per square foot.

The Midtown South market continued to face difficulties during Q3, with leasing activity amounting to only 814,000 square feet, significantly below the five-year quarterly average of 1.14 million square feet. Year-to-date leasing activity in Midtown South also experienced a decline of 44% compared to the previous year, totaling 2.38 million square feet. Renewals for the period accounted for 132,000 square feet, bringing the year-to-date total to 593,000 square feet. The availability rate in Midtown South increased by 50 basis points from the previous quarter to 21.7%, and by 250 basis points compared to the same period last year. Moreover, the net absorption was negative at 406,000 square feet in Q3, leading to a year-to-date total of negative 2.44 million square feet. The average asking rent was $81.73 per square foot, which reflects a 1% decrease quarter-over-quarter but remained flat year-over-year. The sublease availability rate also witnessed a minor increase of 10 basis points from the previous quarter, standing at 4.9%. However, the average asking rent for sublease spaces decreased by 9% compared to the previous year, reaching $60.87 per square foot.

A-3

In Downtown Manhattan, leasing activity slowed down during Q3, amounting to 620,000 square feet. This represents a 37% decrease compared to the five-year quarterly average of 992,000 square feet. Year-to-date leasing activity also experienced a decline of 4% compared to the previous year, totaling 2.25 million square feet. Renewals accounted for 254,000 square feet in Q3, bringing the year-to-date total to 984,000 square feet. The availability rate in Downtown Manhattan increased by 20 basis points from the previous quarter to 22.8%, and by 30 basis points compared to the same period last year. Additionally, the net absorption was negative at 137,000 square feet in Q3, resulting in a year-to-date total of negative 309,000 square feet. The average asking rent was $57.19 per square foot, reflecting a 1% decrease quarter-over-quarter but remaining flat year-over-year. The sublease availability rate remained stable from the previous quarter, standing at 6.9%. Nonetheless, the average asking rent for sublease spaces showed a 2% increase compared to the previous year, reaching $48.02 per square foot.

In conclusion, Manhattan's office market experienced some positive absorption during the third quarter, leading to a decline in the availability rate. However, the leasing activity remained below the five-year quarterly average, reflecting a cautious market sentiment. Renewals were more prevalent amidst economic uncertainty. The market saw variations in asking rents with both increases and decreases, indicating a complex landscape. These trends have shaped Manhattan's office market in Q3 2023, highlighting the need for careful analysis and consideration.

US: Manhattan\'s Q3 Office Leasing Activity Falls Behind Amid Cautious Market Sentiment

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone

AD4


Portugal: Extra Taxes for Holiday Rental Property Owners

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Read more

Rental Homes in Switzerland Drop 28% in 2 Years

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Read more

Controlling personal finance and budgeting app

Australia: Unveiling Regional Queensland’s Lucrative Property Investment Potential

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Read more

Real Estate Auction Sales Surge by 50% - Are Risks Worth the Rewards?

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Potential Drop in Mortgage Rates in Spain Brings Good News for Homeowners

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Read more

Foreigners Spend 39% More on Real Estate in Portugal Despite Recent Decline

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Spain House Prices to Rise by Up to 3% by End of 2024

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Read more

Netherlands Rental Housing Supply Dwindles as New Contract Rents Skyrocket

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Read more

Portugal’s Housing Market Sees 18.7% Decline in Sales

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.