- In May, Manhattan enjoyed 70% more office leasing, thanks to 3MSF of deal volume.
- Availability remains higher than pre-pandemic levels, hinting at market stabilization.
- Notable leasing deals included a Bloomberg extension and 22 Vanderbilt transactions.
According to a Colliers report, higher office leasing activity in NYC signals a welcome return to pre-pandemic trends, with several notable deals driving the momentum, as reported on The Real Deal.
Big Deal Boosts
In May, almost 2MSF were leased in Midtown, contributing to over 3MSF leased across the city’s central business districts. All this added up to an eye-popping 70% YoY surge in leasing activity.
Despite the market’s need for increased demand to match supply levels, mega deals played a pivotal role in boosting leasing volume for the month. Noteworthy deals, like Bloomberg’s lease extension at 731 Lexington Avenue and many other transactions at 22 Vanderbilt.
Signs of Stability
Although sublet supply decreased for the third consecutive month, it’s still considerably higher than pre-pandemic levels. The availability rate indicated marginal tightening, hinting at a stabilizing office market.
In other words, while demand still struggles to match supply, equilibrium is emerging.
Why It Matters
The market’s ability to absorb negative absorption over the past year, coupled with steady availability rates, suggests a potential balancing act in progress.
But Franklin Wallach, director of research and business development at Colliers, emphasized continuing to monitor supply-demand dynamics throughout the year to see how the market shapes up.
