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Downtown Manhattan Office Market Report 2Q 2020

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Downtown leasing volume and the average asking rent decreased during 2Q 2020.  Additionally, absorption was negative while availability increased.

 

Public Sector Drove Downtown Leasing

Lower Manhattan’s quarterly leasing volume decreased by 60.9% since 1Q 2020 to 0.66 million square feet.  This was Downtown’s lowest quarterly leasing volume since 4Q 2010.  Leasing velocity also declined by 73.1%, year-over-year.  Meanwhile, leasing velocity during 1H 2020 (2.35 million square feet) was 53.1% below leasing volume during 1H 2019 (5.03 million square feet).

The public sector dominated leasing in Lower Manhattan during 2Q 2020, at 54%, and was led by the SEC’s 241,000 SF new lease at 100 Pearl Street – Manhattan’s largest lease during 2Q 2020 – and  the GSA’s 66,000 SF renewal at 32 Old Slip.  Leasing by the FIRE (financial services, insurance and real estate) sector followed at 16%, driven by Policygenius at 32 Old Slip (86,000 SF) and Healthfirst at 1 Liberty Plaza (44,000 SF).

Leasing volume was lower or unchanged in all five of Downtown’s submarkets.  The Financial District (FiDi) drove Lower Manhattan leasing during the quarter at 0.49 million square feet, accounting for nearly 75.0% of Downtown velocity in the second quarter, primarily due to the transactions at 100 Pearl Street and 32 Old Slip.


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Downtown Manhattan Office Market Report 2Q 2020

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Franklin Wallach

Executive Managing Director

New York

Franklin Wallach is an Executive Managing Director, Research & Business Development at Colliers.  Franklin's role includes a focus on quarterly and monthly trends within the Manhattan and Brooklyn office markets while using multiple databases and maintaining contacts within the industry in order to provide in-depth market analysis to brokers and clients.

Franklin reports on the office market on a monthly and quarterly basis through analytical reports as well as presentations to tenants, landlords and the press. Data analyzed by Franklin includes: average asking rents, availability rates, concessions, absorption, tenants in the market, leasing activity, construction and future tenant demand. Franklin has been quoted by numerous periodicals including The Wall Street Journal and The New York Times.

Franklin’s expertise in synthesizing data into important, poignant and understandable observations has led him to be a key ingredient on a number of wins over the years. He has also parlayed this skill into offering strategic advisory on existing assignments as well as creative planning for business development pursuits and opportunities. Franklin's business development role enables him to formally assist the Colliers' brokerage practice in the pursuit, development and execution of new business.
 

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