Manhattan's office leasing volume in 2020 was the lowest in two decades, with full-year activity down 55.9 percent over the prior year and 13.4 percent quarter-over-quarter, according to research released by Colliers International. 

The brokerage firm's most recently quarterly report reveals record high availability with negative absorption and a decrease in average asking rents. Approximately 4.16 million square feet was leased in the fourth quarter of 2020, two-thirds lower than the volume recorded in the same period in 2019. Leasing activity in the fourth quarter was also 52.2 percent below Manhattan's five-year rolling average (8.71 million sf) and 49.3 percent below the ten-year average (8.20 million sf). The full-year leasing volume reflects the lowest post-2000 activity on record, according to the report.

Average asking rents decreased by 3.5 percent during the fourth quarter at $74.39 per square foot, the sharpest quarterly decrease since 2009, and were lower in 16 of 18 of Manhattan's submarkets quarter-over-quarter. Asking rent averages also dropped across all categories of available product, with Class A  ($81.40/ SF) reduced by 2.9% since September, Class B product ($62.93/ SF) down 3.7% quarter-over-quarter, and Class C inventory ($52.66/ SF dropping by 4.2%.