Manhattan direct asking rents in the third quarter averaged out to $73.42, down $0.63 from the second quarter and $0.82 from a year ago. Leasing volume continues to be strong with approximately 25 million square feet leased year-to- date, causing a decrease in both the available and vacant supply of office space below 65th Street. The availability rate decreased slightly by 10 basis points to 11.5% (also the five-year average in Manhattan) from 11.6% over the quarter. With net absorption positive for the third consecutive quarter, vacancy is at the lowest it’s been since 2009, when it was averaging 7.2%. Although still distant from reaching such an annual average, the third quarter finished with a vacancy of 7.7%, and we forecast this to continue to remain the same or decrease end-of-year.
Click here to read the full 3Q 2018 Market Office Report.