2015 witnessed negative net absorption of 1.4 million SF across all the submarkets in Manhattan. Lower leasing activity, high amount of renewals and some pre-leasing activity led to negative net absorption. Analyzing different class of properties shows that the negative net absorption was concentered in Class B and C properties. Class A properties registered positive net absorption of 1.2 million SF in 2015. 2015 witnessed 33 transactions above 100,000 SF. New leases accounted for only 50% of these transactions and were concentrated in Midtown followed by Downtown. The positive job growth during 2015 was observed by in health and social assistance, professional and business services followed by accommodation and food services. This is expected to create demand for office space in the coming quarters.
Source : BNP Paribas Real Estate