Midtown’s quarterly leasing volume grew by nearly 75.0% since the previous quarter. Meanwhile, the average asking rent decreased despite tightening supply and positive absorption.
Quarterly Leasing Grew by Nearly 75%
At 3.04 million square feet, Midtown’s quarterly leasing volume grew by a notable 73.1% since Q2 2021. The increase was partially driven by seven separate 100,000+ sq. ft. transactions during the third quarter compared to only one during the second quarter. The largest transactions during the third quarter included Crédit Agricole’s 167,000 sq. ft. relocation within 1301 Avenue of the Americas and BDO USA’s 143,000 sq. ft. new lease at 200 Park Avenue. Demand also grew by 5.2%, year-over-year. Midtown’s third quarter leasing outpaced the 2020 average quarterly volume (2.31 million square feet) by nearly one-third, but was almost one-fourth less than the pre-pandemic quarterly leasing average (3.96 million square feet) in 2019.