CBRE’s commercial real estate advisor reported this week that Manhattan ranks third among the 12 largest in the country in terms of its office market recovery in October 2021, with some metrics on-demand improving space.
Manhattan’s high ranking shows positive dynamics and reflects a growing number of rental businesses and companies actively seeking new space.
To measure the pace of the recovery, CBRE’s monthly report tracks three key indicators of office market activity: Tenants in the Market (TIM), which quantifies the amount of office space businesses are actively seeking. Leasing activities like completed leases; and the availability of spaces under the sublease.
“The number of companies seeking office space in Manhattan increased significantly in October, indicating the market is slowly recovering,” said Nicole LaRusso, senior director of research and development. “The rental amount on the market has almost returned to pre-pandemic levels and suggests an increase in rental activity in the future.”
For each index, a value of 100 corresponds to the values before the pandemics of COVID-19.
The Manhattan Tenant Market Index (TIM) was 98 in October, up to nine points from the previous month and 12 points above the US average of 86.
The Manhattan Rental Activity Index ranked fifth among the 12 markets surveyed with 91 points. This is a modest 4-point drop after three consecutive months of significant improvement.
Another sign of recovery is underway, the Manhattan sublease availability index fell back to 189, a point below the September figure. With available space, 89% above pre-pandemic levels, October is the fifth consecutive month in which sublease rental availability is limited. The improvement is due to the increased absorption and extraction of market space.