Midtown finished Q2 2020 with 1.29 million sq. ft.
of leasing activity, 69% below its five year quarterly
average, and down 68% year over year.
Diminished leasing activity combined with several
50,000+ sq. ft. space additions drove quarterly net
absorption to negative 1.10 million sq. ft.
The availability rate increased 40 basis points (bps)
quarter over quarter to 12.2%.
At $87.04 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 90 bps
quarter over quarter to 92.3% its lowest point since
CBRE Econometrics Advisors’ rent forecast for
Midtown anticipates average asking rent to decline
between 10 and 16% by Q1 2021 before beginning