Quarterly net absorption registered 877,000 sq. ft. in Q4 2017, marking the first time since Q3 2015 that Midtown has seen two consecutive quarters of positive figures.
The availability rate dropped 40 basis points (bps) over the quarter to 11.2%, its lowest quarterly level since Q4 2015.
Midtown’s annual leasing activity totaled 17.97 million sq. ft. in 2017, outperforming its five-year average by 9%.
With 3.96 million sq. ft. of leasing activity in 2017, the Penn Station submarket has exceeded its previous record high by 58%. This reflects strong leasing in the Hudson Yards and Manhattan West projects.
The Finance, Insurance and Real Estate (FIRE) sector accounted for 43% of year-end leasing activity, followed by Professional Services at 18% and Tech, Advertising, Media and Information (TAMI) at 14%.