The NYC commercial real estate market appears to be making a recovery after a downturn during the pandemic, but is still not up to pre-2020 levels.
Many office workers are still partially working from home and some companies have moved out of the city.
There were 5.68 million square feet of transactions compared to the same time in 2021, but 9 percent behind the five-year quarterly average of 6.22 million square feet pre-pandemic.
First-quarter leasing was higher compared with early 2021 but 25 percent below the fourth quarter.
Renewals totaled 866,000 square feet in Q1 2022, down 36 percent from the same period last year.
Midtown asking rent averages rose 2 percent over Q4 2021, with Midtown South leasing volume going up for the third straight quarter.
The average asking rent was up 1 percent from last quarter at $77.55 per square foot, up 2 percent from one year ago.
Downtown Manhattan's quarterly absorption saw good signs of recovery for the first time since Q3 2019, but total Manhattan net absorption was down to 3.24 million square feet in Q1 2022.
Phaidon International also will be subleasing 71,239 square feet at SL Green’s 711 Third Ave in one of the year's biggest deals after a decision to move from 622 Third Avenue, which only provided about half the space, said the paper.
GCRE reported that the Manhattan sublease availability rate was 4.7 percent, with the average asking rent down 2 percent from one year ago to $58.06 per square foot.
The Post also reported that Marx Realty’s 10 Grand Central, a 20th-century building on Third Avenue and East 44th Street, is continuing to fill up after a recent $48 million capital improvement program.
HLTH, a conference organizer for health innovation, is one of the tenants, which expanded its footprint in the building after signing a new lease.
Other tenants include LIV Golf Inc, Family Management Corp, Kasa Living, and the CAVA Mediterranean eatery on the ground floor corner space.
"February office foot traffic in Manhattan was down 46.7 percent, on average, compared to visits in February 2020 on the eve of the pandemic."
“The city is springing back to life as of the beginning of April, but it’s been slow going," she said.
"NYC office occupancy still has a long way to go before it returns to its pre-COVID levels,” Petrack concluded.