Manhattan office leasing activity spikes

New leasing activity in the Manhattan office market jumped 21.5 percent in the second quarter with 10.0 million square feet (msf) leased, according to Cushman & Wakefield. Year-to-date activity reached 18.3 msf, marking the first time in 25 years that the midyear total exceeded 18 msf.

Despite the high level of leasing activity, the overall vacancy rate in Manhattan climbed 30 basis points in the second quarter to 10.5 percent. Six blocks greater than 100,000 sf entered the market, and sublease space increased to a nine-year high of 8.7 msf, accounting for 20.6 percent of total available space — the highest percentage since 2010.

The overall Manhattan average asking rent increased to $74.15 per square foot, up from $72.67 a year ago. The average asking rent for Midtown increased by $1.14 psf in the second quarter and now stands at $76.56.

For the complete report, which contains submarket leasing, rent and vacancy data, click