Midtown finished Q4 2018 with 6.29 million sq. ft. of leasing activity, its highest quarterly total since 2001.
With 20.17 million sq. ft. of leasing activity at year-end, Midtown finished 12% ahead of the prior year and reached its highest year-end total in history.
Historically strong leasing activity drove quarterly net absorption to positive 1.93 million sq. ft., its highest quarterly output since Q4 2005, bringing the year-end total to positive 1.34 million sq. ft.
The availability rate decreased 80 basis points (bps) quarter-over-quarter to 10.3%, its lowest level since 2008.
At $78.43 per sq. ft., Midtown asking rents remained flat quarter-over-quarter and have decreased 1% year-over-year. However, the taking rent index increased notably, rising 300 bps year-over-year, to 94.1%.
Concession packages for new leases of raw space completed in 2018 increased 4% from year-end 2017 to an average of $97 per sq. ft. in tenant improvement (TI) allowance, a slight increase compared to the 15% rise in TI from 2016 to 2017.