Midtown’s office market had an exceptional Q1 with 3.94 million square feet leased, well above the 5-year average of 3.72 million. The new leasing however was unable to make up for large blocks of space coming online as well as a push for less space per employee and overall the market saw a negative net absorption of 379,000 square feet.
As a result, the overall availability rate was up 0.2 base points from 11.7% at the end of Q4 2013 to 11.9% but still way below the 12.4% rate at the end of Q1 2013. That particular quarter saw a -1 million square foot absorption rate which caused temporary spikes in a number of market metrics.
In spite of the negative net absorption, overall market conditions continue to favor landlords and average asking rates grew 2% compared to Q4 to settle at $74.27sqft/year. Companies hoping to find a cheap sublease in the market should know that the availability rate for sublease space is fairly low at 2.1% compared to 2.7% same time last year so while sublease opportunities are out there, you’ll have to look harder to find them.
If you’re searching for space in Midtown contact us today and we can search for space currently on the market as well as sublease space to find the right fit for your business.
Photo credit: gigi_nyc