Midtown’s quarterly leasing volume decreased. Meanwhile, asking rents increased slightly despite more supply and negative absorption.
Midtown Lowest Quarterly Leasing Since 2009
Midtown’s quarterly leasing volume decreased by 36.6% since 1Q 2020 to 1.88 million square feet, Midtown’s lowest quarterly leasing total since 2Q 2009. Additionally, leasing volume decreased by 52.1%, year-over-year. Leasing volume during 1H 2020 (4.85 million square feet) was 41.0% below the 8.21 million square feet leased in 1H 2019. The Times Square submarket led leasing activity in Manhattan, at 0.82 million square feet, led by TikTok’s 232,000 SF new lease at 151 West 42nd Street and Allen & Overy’s 143,000 SF renewal at 1221 Avenue of the Americas. Times Square and Midtown South’s Hudson Square (0.09 million square feet) were the only two Manhattan submarkets with an increase in leasing volume since 1Q 2020.