Manhattan asking rents for office declined 0.5% from midyear to $70.35 per square foot in Q3 2021, according to Transwestern. This is the smallest quarterly decline since the beginning of the pandemic. In total, rents are down 10.2% year-over-year and remain about 13.6% below their Q1 2020 peak.
Other signs show promise for the borough. Manhattan was one of the standouts in CBRE's US Tenants in the Market Index, ranking third among the 12 largest cities in the country for office market recovery in November with multiple measures of demand showing steady progress. Another indicator of progress: the Manhattan availability rate decreased for the first time since mid-2019, falling 0.2 pp to 18.0% in the third quarter, according to Transwestern.
Here is how these metrics break down.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
