Like Midtown, Downtown had a slower than average month for leasing activity with overall totals coming in roughly 5 percent below the 5 year monthly average. For the month of February 420,000 square feet were leased which was roughly 20,000 square feet lower than typical production but due to the fact that there is very little additional supply, the market finished with a positive net absorption of 230,000 square feet.
The increase in net absorption saw the availability rate drop 30 basis points month-over-month and is currently 160 points lower than February 2014. The average asking rate in Downtown settled up $0.44 to land at a new record of $55.28 which represents a 14 percent increase year-over-year.
Again, like Midtown, leasing activity for the month was largely shaped by a single transaction with WeWork coworking signing a 235,000 square foot lease at 85 Broad St. and that single lease alone accounted for more than half of overall market production (WeWork is no stranger to large block leases).
If your business is looking for space in Downtown Manhattan, contact Synergy Real Estate Group today for a detailed look at opportunities and availability throughout the areas numerous submarkets.
Photo credit: Eric Burniche