Leasing activity reawakened in Manhattan’s office market during third quarter 2021, totaling 6.3 million square feet, according to a new research report from Transwestern Real Estate Services (TRS). Additionally, the market posted positive net absorption for the first time since 2019, while vacancy and availability rates both declined during the quarter, providing much-needed good news for the office market.
Average rent rates posted the smallest quarterly decline of the pandemic, dropping 0.5 percent to $70.35 per square foot, down 10.2 percent from a year ago and 13.6 percent off the first quarter 2020 peak. Sublet availability, which had surged during the past year, declined to 25.3 percent of total availability, the lowest ratio since second quarter 2020 and closer to pre-pandemic levels.
“The Manhattan office market is continuing to see a rise in activity and an increase in confidence from both landlords and tenants,” said Chase Gordon, senior vice president a