NEW YORK, Jan. 16, 2019 (GLOBE NEWSWIRE) -- Manhattan’s office market closed 2018 with a strong fourth quarter that featured more than 10 million square feet of leasing activity, pushing the yearly total over 34 million square feet for the first time since 2014, according to Transwestern’s fourth-quarter office market report. Market activity was driven by the FIRE (finance, insurance, real estate) sector, which accounted for a third of fourth-quarter leasing.
Manhattan posted 2.8 million square feet of positive net absorption this quarter, the highest total since 2014, and positive 1.3 million square feet for the year. For the first time since 2015, all submarkets witnessed positive net absorption for the quarter.
“Manhattan closed the year with one of its strongest quarters on several fronts, with high levels of leasing activity, an increase in asking rental rates and a decrease in availability,” said Danny Mangru, Research Manager at Transwestern. “Coworking continued to be a driving force, accounting for 10 percent of this quarter’s leasing activity and a remarkable 15 percent of the 2018 total.”
Additional highlights from the report include:
- Manhattan recorded 35 new leasing transactions in excess of 50,000 square feet this quarter, including 16 transactions over 100,000 square feet.
- The FIRE sector accounted for 10 transactions exceeding 100,000 square feet.
- The availability rate closed the year at 10.6 percent, down from 11.4 percent last quarter and dropping below 11 percent for the first time since 2016.
- Midtown South’s availability rate dropped from last quarter’s 9.6 percent to 8.9 percent, the lowest since 2016.
- Average asking rent in Manhattan increased slightly to an all-time high of $74.92 per square foot, up 2 percent over last year.
- Midtown South’s average asking rent increased 4 percent to $79.99 per square foot, an all-time high and only 18 cents behind Midtown.
Download Transwestern’s full fourth-quarter 2018 report at: https://transwestern.com/market-reports
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Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Asset Services, Occupier Solutions, Capital Markets and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Transwestern has 33 U.S. offices and assists clients from more than 219 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and Canada-based Devencore. Experience Extraordinary at transwestern.com and @Transwestern.