Manhattan Office Shows Signs of Both Strength and Weakness

In the topsy-turvy world of the current pandemic, leasing activity surged in the third quarter but negative absorption reached record highs and asking rents fell.

By Rayna Katz | October 07, 2020 at 09:02 AM

Looking at activity in the Manhattan office market during the third quarter, the picture is murky. Overall, activity jumped by a million square feet, rising to 4.6 million square feet from 3.6 million, according to Newmark Knight Frank’s latest quarterly research.

Other indicators also showed declines—or increases where no one wants them. Negative absorption of 10,973,238 square feet was seen after a spike in availability, marking the highest volume of negative quarterly absorption on record, NKF said. Further, year-to-date absorption through the first three quarters of 2020 hit its lowest point since 2001, and the metric has now been negative in seven of the last eight quarters.

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