Manhattan Office Rent Falls for 8 Consecutive Months, Hits Lowest in 3 Years

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Office rental prices in Manhattan, New York, USA, have fallen to their lowest level since March 2018, Bloomberg News reported on the 1st (local time), citing statistics from real estate brokerage firm Colliers.

Last month, the office rental price in the Manhattan area was $73.12 per square foot (0.028 pyeong), approximately 82,194 KRW. Manhattan office rental prices have declined for eight consecutive months.

Manhattan office rental prices have been continuously falling since the spread of remote work due to COVID-19. Unlike other regions where COVID-19 lockdown measures are being eased as vaccination efforts accelerate, Manhattan still maintains a bleak atmosphere.

According to Castle Systems, as of the 17th of last month, only 14% of New Yorkers have returned to the office from remote work. Most are still working from home, which is causing office rental prices to decline.

The Manhattan office vacancy rate has increased for nine consecutive months. Colliers reported that as of February, the office vacancy rate was 15.5%, the highest since related statistics began being compiled in 2000.

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