Downtown Leasing Spree Backed by Latest Data

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Downtown’s strong leasing trend continued in March with the ninth consecutive month of leasing above the five-year monthly average, according to a new CBRE report.

SEE ALSO: Tradition, Progression, Ambition: RXR Makes Downtown the Right Choice for All Tenants
Lower Manhattan as seen from New Jersey.
Lower Manhattan as seen from New Jersey.

The 590,000 square feet of activity recorded in March was 51% above the five-year monthly average of 390,000 square feet, helped along by Macmillan Publishers’ 177,000-square-foot lease at 1 New York Plaza, first reported in Commercial Observer and the largest lease signed in Manhattan during the month.

The first three months of the year netted the highest year-to-date total since 2002, with total leasing of 1.62 million square feet, which was an 18% jump from the same period last year.

“Driven by the upward repricing of available space,” average asking rents Downtown also increased for the fourth consecutive month, up 4% year-over-year to $48.70 per square foot, according to the report.

Total Manhattan leasing activity in March totaled 1.96 million square feet, slightly lower than the five-year monthly average of 2.01 million square feet, but 9% percent higher than the 1.79 million square feet of activity last March.

Midtown Leasing activity slowed during March, with a total of 990,000 square feet of space leased, but Midtown South experienced its fourth consecutive month above the five-year monthly average with 380,000 square feet of leasing activity. Pricing was $74.27 per square foot and $63.05 per square foot, in Midtown and Midtown South, respectively.