Cushman & Wakefield announced the third quarter statistics for Manhattan commercial real estate sales which showed an increase in leasing activity for office space.
In total, 24.1 million square feet of leases were signed over the first three quarters of 2011. During the third quarter alone, 6.4 million square feet of office space was leased, which marks the strongest third quarter since 1998. Last year, during the first nine months, 18.8 million square feet were leased, marking a year-to-date increase in office leasing of 28 percent for 2011, the real estate agency states.
CRE vacancy rates in Manhattan are currently at 9.3 percent, which is the lowest point since February of 2009. Since the first quarter of 2011, leasing availability has decreased 0.7 percent, while year-to-year it has declined 1.5 percent, according to the firm.
"Through the third quarter, Manhattan commercial real estate fundamentals have strengthened, following the record pace of new leasing activity," Joseph R. Harbert, CEO of Cushman & Wakefield's New York Metro region. "It is clear we have been in a hot leasing market."
Manhattan's commercial real estate market is the largest central business district in the country, with approximately 393 million square feet. The borough has more than 25 percent of all CBD office space in the nation.