(Bloomberg) – There is a record number of office space available in Manhattan.
With workers stuck at home, the office uptime rate jumped to 14.9% in January, the highest in data from 2000, according to a report by Colliers International.
Leasing has fallen almost 47% compared to the same period last year. It came even as asking rents fell for the seventh straight month to $ 73.65 per square foot on average, the lowest in nearly three years.
Manhattan’s office supply has increased since March, when the pandemic emptied skyscrapers and businesses turned to remote working. Efforts to get workers back to offices have been hampered by the increase in Covid-19 cases.
As many businesses re-evaluate their office needs in an effort to cut costs, there are signs of life in the market. Leasing in Manhattan hit 1.9 million square feet (roughly 176,500 square meters) in January, the highest level since July and 20% above the monthly average for 2020.
January’s numbers were pushed up by a handful of large leases, including Beam Suntory taking nearly 100,000 square feet at 11 Madison Ave.
© 2021 Bloomberg L.P.
