Downtown NYC finally seeing uptick in leases

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The Rise of Downtown Manhattan Office Leasing

The surge in Manhattan office leasing, primarily in Midtown, is now extending its reach to downtown Manhattan.

JLL’s latest report reveals a noticeable increase in leasing volume and rents across the district’s 95.6 million square feet in the third quarter compared to the same period last year.

JLL reports that downtown leasing volume and rents increased noticeably in the third quarter from the same period last year. Getty Images

Vacancy rates have dropped by a full percentage point to 23%, while asking rents have risen by 3.1% to $59.56 per square foot.

Michael Colacino, JLL’s president of tristate brokerage, commented, “The big story this month is Downtown’s comeback, with activity nearly double last year’s. Acting early will be crucial as rents are on the rise and prime spaces are being taken up swiftly.”

The S&P Global building at 55 Water Street in New York, NY. — The largest deal downtown was for 55 Water St. Google

The standout deal was a direct lease for financial firm GFI Group for 112,783 square feet at 55 Water St. — more than doubling its previous space in the tower.

One of the most anticipated developments downtown is Larry Silverstein’s negotiations with AmEx for a potential agreement to kickstart the construction of 2 World Trade Center. While details remain scarce, the market is hopeful for a positive outcome following previous setbacks.