Lower Manhattan Only Submarket With Positive Net Absorption: Report


A Cushman & Wakefield report found that in the third quarter Lower Manhattan was the sole major office submarket to register positive net absorption.

A total of 523,000 square feet of office space was absorbed, a figure aided by  a 2.8 percent jump in October leasing activity from year-ago levels. “Downtown is its own success story,” Tara Stacom, an executive vice chairman at C& W, said in a prepared statement. “Registering more than a half of a million square feet of positive absorption during the third quarter is remarkable. Lower Manhattan has re-invented itself as a 24/7 hub where creative and innovative companies can flourish.”
home photo Lower Manhattan Only Submarket With Positive Net Absorption: ReportAverage asking rents increased 14.8 percent, to $45.66 per square foot, during the period, thanks largely to  “non-financial tenants relocating from Midtown and Midtown South.” Meanwhile, the residential population of Lower Manhattan swelled to over 63,000 people. The top leasing sectors were Information/Media (20.5 percent of leasing activity) and Government, Education, and Social Services (20.1 percent).

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The third quarter’s absorption totals were the highest for the submarket since the second quarter of 2011. The vacancy rate settled at 10.9 percent while availability declined by 6 percent. “For perhaps the first time in its history,” Ms. Stacom said, “Downtown is increasingly being seen as a tenant’s most desired option.”