Led by Ropes & Gray’s 429,342-square-foot commitment at 1285 Ave. of the Americas, Manhattan office leasing activity totaled 1.82 million square feet in November, 10% ahead of the five-year monthly average of 1.65 million square feet, CBRE reported. This marks the eighth consecutive month of leasing volume surpassing the five-year average. 

Year-to-date leasing activity through Nov. 30 totaled 20.75 million square feet, up 29% from the prior year. Renewals totaled 755,000 square feet in November, bringing the YTD total to 8.31 million square feet.

The availability rate was unchanged from last month at 18.9% but was down 120 basis points year-over-year, according to CBRE. Net absorption was positive 199,000 square feet in November, bringing the YTD total to positive 5.16 million square feet.

At $77.97 per square foot, the average asking rent was essentially flat month-over-month, but gained 1% Y-O-Y. The sublease availability rate declined 10 bps from last month to 4.2%, with the average asking rent remaining flat from one year ago at $57.89 per square foot.

Valuations on distressed properties as of midyear 2024 have declined an average of 43% from their original issuance, CRED iQ reported. The decline has increased by 140 points from six months ago. 

By valuation grouping, distressed properties valued at less than $5 million have seen the largest declines in assessed values at an average of 51%. Those valued at $100 million or more have seen assessments drop by 37%. 

The top three largest overall declines for 2023 and 2024 were in the office sector, which also saw the largest single-property valuation decline. That distinction falls to 1740 Broadway, an office property in Midtown Manhattan, which is now valued at $175 million, a drop of $430 million. Overall, valuations on distressed office properties are down by 53%.  

Not far behind is retail, which registered an average valuation decline of 52%. In this sector, sizable assessment declines include a $360-million drop for the Mall of America in Bloomington, MN and a $244.6-million decline for Mall de las Aguilas in Eagle Ridge, TX, which is now valued at just $10 million. 

The hotel sector saw an average valuation decline of 40% on distressed properties. Multifamily was largely flat compared to six months ago with a 35% decline, while assessment declines for distressed industrial improved from an average of 32% to 10% over the same time period. 

Pictured: 1740 Broadway. Credit: Kevin Chu and Jessica Paul Photography.