In July, the Manhattan availability rate reached 9.5 percent, and as the market continues to improve, the amount of time space remains on the market for lease diminishes. Currently, the average time on the market for Manhattan office space is 8.2 months, which is down from a five-year average of 10 months. It is no surprise that Midtown South available space has the shortest average time on the market at only 5.8 months. Although the availability rate in Midtown has been up and down all year, quality space leases up quickly and the market is outperforming its five-year average of 7.2 months. Midtown office space has the second shortest time on the market at 9.1 months, which is also down from its five-year average of 10.5 months. Downtown office space has the longest time on the market at 12.1 months, but even with space remaining on the market for more than a year, it is still an improvement on the 13.6 months averaged over the past five years.
So with all this Manhattan available space being leased up quickly, here are the top five submarkets that have a shelf life that’s less than six and a half months:
Number five – Flatiron/Union Square: Available space remains on the market for only 6.5 months and despite the quick turnover of space it has the highest availability rate in Midtown South at 9.5 percent.
Number four – Chelsea/Meatpacking: The available supply in this submarket is marketed for an average of 5.5 months.
Number three – Madison Square/Park Avenue South: Available space lasts on the market for only 5.3 months in this submarket, down from its five-year average of 8.5 months. This submarket improved the most of the top five submarkets compared to the past five years.
Number two – Fashion District: The only Midtown submarket to crack the top five list, available space lasts on the market for only 4.0 months. In spite of the highest availability rate on the top five list of 9.9 percent, space turns over quickly.
Number one – Soho/Noho/Village: The submarket with the lowest availability rate at 3.5 percent also has the shortest time on the market at three months. This submarket also has the shortest time on the market five-year average at 5.5 months.