Colliers Worldwide: Manhattan workplace leases drop in April

The workplace availability fee in Manhattan elevated for the eleventh consecutive month in April to a report 16.5%, based on Colliers Worldwide. Availability of greater than 10% on the island is taken into account a tenant market.

Manhattan leasing exercise is down 46% from March and 75% from the month-to-month common for the report 12 months of 2019, suggesting the market nonetheless has a protracted strategy to go.

An indication of a probably therapeutic market, out there sublet area, now accounting for almost 24% of all out there area, fell for the primary time since Could 2020. When area sublet exceeds 25% of all out there area, it’s thought-about a glut.

“It is exhausting to attract long-term tendencies with a month of knowledge,” mentioned Frank Wallach, senior New York analysis director at Colliers. “The month of April began to point out the primary concepts of a potential thaw within the wave of subletting area.”

Regardless of the glimmer of an increase, different knowledge confirmed a market nonetheless within the grip of the pandemic.

The typical asking hire in Manhattan fell 0.4% to $ 72.97 per sq. foot, the bottom since December 2017. Because the recession started in March 2020, the common has fallen 8.2%.

A single lease was for over 100,000 sq. toes, a 109,000 sq. foot (10,126 sq. meters) transaction leased by software program firm Schrödinger’s at 1540 Broadway.

(Reporting by Herbert Lash in New York; Extra reporting by Gertrude Chavez-Dreyfuss in New York; Modifying by Jonathan Oatis and Matthew Lewis)

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