• Midtown finished Q1 2020 with 4.09 million sq. ft. of leasing activity, 7% below its five-year quarterly average, but up 4% year-over-year.
• Below-average leasing activity combined with several large-block additions drove quarterly net absorption to negative 1.16 million sq. ft.
• The availability rate increased 50 basis points (bps) quarter-over-quarter to 11.8%.
• At $87.00 per sq. ft., the Midtown average asking rent remained essentially flat quarter-over-quarter.
• The average tenant improvement (TI) allowance for new leases reached nearly $107 per sq. ft. and 14 month of free rent.
• The taking rent index notched a drop of 210 bps quarter-over-quarter to 93.2% - its lowest point since Q2 2019.
• Leasing activity by industry was topped by legal tenants at 23%, closely followed by financial service* occupiers at 22%, with technology tenants accounting for 15% of leasing activity in Q1 2020.
* Financial services excludes the insurance industry