NEW YORK CITY—With the local employment market showingnoteworthy growth in the second quarter—jumping 1.9% year-over-yearin May alone—the office market is continuing to thrive, accordingto a new report from Cassidy Turley.

The Manhattan office market posted its fifth consecutive quarterof positive absorption with an increase of 1.45 million squarefeet. That uptick brought the mid-year total to just under threemillion square feet. All of this success has put a squeeze onprospective tenants: the overall Manhattan availability ratedropped by 30 basis points to 10%, the lowest rate in 23quarters.

Leasing stayed strong, with just over 17 million square feettransacted. Led by the 11 signed leases for space greater than100,000 square feet this quarter alone, the total number of largeleases signed was 27 by mid-year, on pace with the 58 completed in2013. Demand for large blocks of space remains high as supply forthese space options continue to disappear.