NEW YORK CITY-The Manhattan office leasing market is continuingin “wait-and-see” mode as large corporate users and others sit onthe sidelines amid national and global uncertainty. “I want to usethe title of Bruce Springsteen’s song ‘Waitin’ On A Sunny Day,”said Lou D’Avanzo, vice chairman atCushman & Wakefield, during the firm’s thirdquarter media briefing on Tuesday morning. “We are sort of justmuddling along and kicking the can down the road. In some ways itseems more like a dumpster than a can, but we are still hanging inthere and moving forward.”

According to data from C&W, new leasing activity inManhattan totaled 16.8 million square feet year-to-date, ascompared to 24 million square feet during the same time period in2011, resulting in a 30% drop in new leasing activity for theoverall Manhattan market for the first two quarters. Adding inrenewals year-over-year, the same three-quarter period has declinedfrom 30 million to 26 million. The overall decline is just13.5% for the two time periods.

Historically, renewals only account for approximately 20% ofleasing activity, but in 2012, it accounted for 35% of all leasingactivity in Manhattan, D’Avanzo said, a trend reflecting the entiresentiment of the marketplace. “We simply believe this reflectstenant’s desire to avoid spending capital considering uncertaintyin the global marketplace and own businesses,” he said.