Q2 NY Office Outlook: Large block leasing activity drives vacancy lower as confidence increases

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Like the greater U.S. economy, recovery in the Manhattan office market has been slow but tangible.

Office_reportJLL’s Q2 New York Office Outlook reported on conditions in the nation’s largest office market over the quarter and the year so far.

Report highlights are as follows:

  • The Manhattan office vacancy rate fell to 10.6 percent from 11.1 percent – its lowest level in two years – as a result of several major leases by the previously lagging financial and legal services sectors.
  • The Midtown South Class A vacancy rate fell to 5.8 percent, one of the lowest in the country.
  • The NYC investment sales market experienced a record-setting first half of the year with 221 deals closed and 39 deals under contract for a total of 260 deals year-to-date.

Read the full report for a comprehensive capital markets overview, a New York property clock, and for more detailed insights regarding conditions in the Midtown, Midtown South and Downtown sub-markets.