Midtown’s leasing volume shrank by nearly half, quarter-over-quarter. Meanwhile, the average asking rent decreased with more supply and negative absorption.
Quarterly Leasing Fell by Nearly Half
At 1.76 million square feet, Midtown’s quarterly leasing volume fell by nearly half since Q1 2021. The decrease was partially driven by the sq. ft. difference between the largest leases each quarter. Schrödinger’s 109,000 sq. ft. new lease at 1540 Broadway was the leading Midtown transaction during Q2 2021, whereas Blackstone’s 720,000 sq. ft. renewal and expansion at 345 Park Avenue was the biggest in Q1 2021. In addition, Midtown’s leasing activity was still 55.7% less than the pre-pandemic quarterly leasing average (3.96 million square feet) in 2019. Year-over-year, quarterly leasing activity decreased by 6.6%.