Manhattan availability soars to over 17.2%, its highest level in decades; occupiers have unprecedented opportunity to capitalize on historic levels of available inventory

With both direct and sublease space continuing to flood the market, Manhattan’s overall availability rate surged during Q1 2021. An additional 3.4 million square feet (msf) of sublease space came to market, marking the third consecutive quarter that sublease availability has increased by more than 2.5 msf. Sublease inventory now totals 22.0 msf, a 61.7% increase from pre-pandemic levels. An additional 7.9 msf of direct space was added to the market with some notable additions from a few shuttered coworking locations. With these additions, overall market availability rose 570 basis points over the year to 17.2%, its highest level in at least three decades. Abundant short- and long-term options are driving price reductions, many owners proposing historically aggressive rates, concessions and flexibility to secure tenants amid so much competition.

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