Tenants continue to shed office space at the highest rate in 15 years. Overall availability in Manhattan rose in Q3 2020 to 14% of total supply, rising 220 basis points since Q2 of this year and 270 basis points year-over-year. The sharp increase in availability is matched with a decline in the average overall rent, furthering the decline from $80.98/SF in Q2 to $78.75/SF in Q3, and down from $79.66/SF in Q3 2019. Midtown South saw the greatest decline in average rent, decreasing $2.26/SF quarter-over-quarter. During the last two recessions, pricing took an average of two years to reach their lows following periods of market shock, so it is yet to be seen how much lower average rents will fall. Beyond pricing, concessions are on the rise-with some landlords offering short-term, fully furnished, wired, pre-built space – with free rent; so net effective rents are actually at historic lows.