Manhattan Midtown South Office Figures Q4 2022

‒ Leasing activity totaled 1.06 million sq. ft. in Q4 2022, a 37% decrease from Q3 2022 and 16% behind the five-year quarterly average.

‒ Annual leasing activity totaled 5.27 million sq. ft., up 10% from 2021.

‒ Renewals totaled 139,000 sq. ft. in Q4 2022, bringing the full-year total to 1.35 million sq. ft.

‒ At 19.2%, the availability rate was flat from the previous quarter but was up 110 bps from a year earlier.

‒ Net absorption finished Q4 2022 at negative 30,000 sq. ft., bringing the annual total to negative 998,000 sq. ft.

‒ The average asking rent was virtually unchanged from the prior quarter at $83.13 per sq. ft. but was up 6% year-over-year.

‒ The sublease availability rate was 4.5%, down 20 bps from Q3 2022. Subleases’ share of total available space was 23.2% as of Q4 2022 – down 120 bps from the prior quarter.

‒ The taking rent index decreased to 90.3% in Q4 2022 from 95.8% the previous quarter but was up from 120 bps from one year ago.