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NY Q3 2021 Manhattan Office Market Report

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Manhattan’s leasing volume jumped by 58.8%, quarter-over-quarter. Meanwhile, availability tightened with positive absorption despite lower pricing.

The arrival of the COVID-19 pandemic drove New York City’s unemployment rate from 4.2% in March 2020 to a record-high 20.2% two months later.1

Since then, New York City’s unemployment rate has been cut in half, decreasing by 10.4 pp (percentage points) to 9.8% as of August 2021. Additionally, New York City’s 6.2% annual private sector job growth bettered the growth nationally (at 5.2%) and at the state level (at 5.4%).2

 

Strongest Quarterly Leasing Since 2019

At 7.23 million square feet, leasing volume during Q3 2021 jumped by 58.8%, quarter-over-quarter, and by 50.5%, year-over-year. This was also Manhattan’s strongest quarter of activity since late-2019 and the biggest percentage jump in quarterly leasing since 2013. Despite this, leasing activity during the third quarter was still 12.0% below Manhattan’s five-year rolling average (8.22 million square feet) and 10.3% below the ten-year average (8.06 million square feet).


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NY Q3 2021 Manhattan Office Market Report

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Franklin Wallach

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Franklin Wallach is a Senior Managing Director, Research at Colliers International. 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 New York City commercial real estate periodicals including The Real Deal and GlobeSt.com.

Franklin joined Colliers after working in CBRE's Lower Manhattan office as a Senior Research Analyst.

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