Large leases brighten the Manhattan picture

While leasing activity slowed in Manhattan, New York, during 2008, large leases continued to be completed, according to Cushman & Wakefield (C&W). Last year, 32 leases of more than 10.000 sq m were signed, compared to 30 such leases in 2007.

Leases of more than 10.000 sq m accounted for nearly 35% of all leasing activity in 2008, versus 13% of activity in 2007. “The majority of 2008’s larger deals were due to expiring leases, and many of these tenants chose to stay and renew” said Joe Harbert, chief operating officer of Cushman & Wakefield’s New York region.

Seven of the year’s 10 largest leases were renewals, compared to five of the largest 10 in 2007.

Overall, however, leasing activity for 2008 was down 19% from the 2.3 million sq m leased in 2007, according to C&W’s year-end report on the Manhattan commercial real-estate market.

MIPIM Preview, February 2009.