Downtown NYC Sees Uptick in Leases
Introduction to the Trend
The Manhattan office-leasing surge that’s mostly been concentrated in Midtown is finally helping to lift the boat downtown.
JLL reports that leasing volume and rents across the district’s 95.6 million square feet increased noticeably in the third quarter over the same period last year.
JLL reports that downtown leasing volume and rents increased noticeably in the third quarter from the same period last year. Getty Images
Market Performance
Vacancy fell a full percentage point to 23% while asking rents increased 3.1% to $59.56 per square foot.
Michael Colacino, JLL’s president of tristate brokerage, said, “The big story this month is Downtown’s comeback, with activity nearly double last year’s. All of this points to a market where acting early will matter, as rents rise and the best spaces get snapped up quickly.”
Notable Deals
The largest deal downtown was for 55 Water St. Google
The largest deal was a direct lease for financial firm GFI Group for 112,783 square feet at 55 Water St. — more than doubling its previous space in the tower.
Of course, what downtown really wants is news of Larry Silverstein’s talks with AmEx over a possible agreement to finally get 2 World Trade Center off the ground. Everyone with even the least awareness clams up nervously when asked about it. But after two previous non-binding agreements at the site fell through, don’t expect to hear anything credible until a contract is signed with no escape clause.
Conclusion
The uptick in leases in Downtown NYC is a positive sign for the area, indicating a potential shift in the market. With vacancy rates decreasing and rents increasing, it’s essential for businesses to act quickly to secure space. As the market continues to evolve, it will be interesting to see how Downtown NYC compares to other areas in the city.
FAQs
What is the current vacancy rate in Downtown NYC?
The current vacancy rate in Downtown NYC is 23%, which is a decrease from the previous year.
What is the average rent per square foot in Downtown NYC?
The average rent per square foot in Downtown NYC is $59.56, which is a 3.1% increase from the previous year.
What was the largest deal in Downtown NYC?
The largest deal in Downtown NYC was a direct lease for financial firm GFI Group for 112,783 square feet at 55 Water St.
