Leasing activity was lower, quarter-over-quarter, as the available inventory increased with negative absorption. The asking rent average decreased since 1Q 2020.
Lowest Quarterly Leasing Volume Since 2009
Quarter-over-quarter, leasing volume in Midtown South decreased by more than 70.0% to 0.64 million square feet, Midtown South’s lowest quarterly leasing volume since 1Q 2009. Year-over-year leasing activity decreased by 86.6% compared to 4.80 million square feet leased in 2Q 2019. Likewise, leasing volume during 1H 2020 (2.80 million square feet) was 60.1% below leasing volume during 1H 2019 (7.02 million square feet).
Mostly driven by new leases from Match Group at 60-74 Gansevoort Street (41,000 SF), Twitch Interactive at 315 Park Avenue South (35,000 SF) and Trustpilot at 5 Penn Plaza (29,000 SF), TAMI (technology, advertising, media and information services) sector tenants led Midtown South’s quarterly leasing with a 37% market share. The entertainment/recreation sector followed at 16%, led by MSG’s 60,000 SF renewal at Penn 2.