NYC Market Update: Manhattan Kicks Off New Year With Big Leases
The borough's office vacancy is still the second-lowest among gateway markets.
By the end of January, Manhattan’s office vacancy reached 12.8 percent, virtually unchanged month-over month and lower than the national average of 15.7 percent, according to CommercialEdge data.
Even though numbers are still slow to point toward a definite recovery, several large leases that closed in the first month of the year offer glimmers of hope. The borough is in line with the national trend of slowly increasing vacancy: across all U.S. markets Phoenix was the single city to see vacancy go down month-over-month.
On a year-over-year basis, Manhattan registered a 230-basis-point increase. Among gateway markets, Miami and Boston were the two cities that registered decreases in office vacancy, with a 190- and 40-basis-point drop, respectively. In January, Manhattan maintained its second place among gateway cities with lowest office vacancy, after Boston (10.7 percent). Miami came in third, with a 13.4 percent average. Houston (24.3 percent), Atlanta (21.7 percent) and Chicago (19.6 percent) hit the highest rates that month.
Largest Manhattan leases
In January, Empire State Realty Trust closed on four lease transaction in three of its properties, two of which were in Manhattan. The deals added up to 428,481 square feet: two leases totaling 295,291 square feet at 1400 Broadway and an 81,996-square-foot lease at One Grand Central Place. The fourth, a 51,194-square-foot agreement was in Stamford, Conn. Signature Bank signed a 15-year lease, while Clarins USA’s commitment stretched over 10 years, both at 1400 Broadway. The third Manhattan tenant was iCapital Network, which inked a new, 12-year lease.
Digital media player manufacturer Roku inked a major Manhattan lease in January at RXR Realty’s 5 Times Square. The new tenant will occupy 240,000 square feet across eight full floors at the top of the 1 million-square-foot tower. The space was previously occupied by Ernst & Young, which relocated its headquarters to One Manhattan West in 2021.
CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.
You must be logged in to post a comment.