(Bloomberg) -- Blocks of empty offices in the Financial District helped push the supply of available space in Manhattan to another record high.

The office availability rate in New York reached 19% in the first quarter, the highest in data going back to 2000, according to a report Wednesday by Savills Research. 

In the Financial District, more than a quarter of offices were available to rent, compared to just 17% a year ago. That jump was largely due to a pair of large buildings being redeveloped, including the former Deutsche Bank headquarters at 60 Wall St., Savills said. 

“Tenants are focused on new top-tier space,” said Sarah Dreyer, senior vice president of research and data services at Savills. “There could be some blocks left behind as tenants shifted to higher-quality space.”

Manhattan landlords have been struggling with a glut of office space during the pandemic, as workers are slow to return to their desks and companies re-evaluate their real estate needs. 

Firms looking for offices have been gravitating to newer buildings, which helped push up average asking rents 1.7% to $77.34 a square foot in the first quarter. Still, landlords are including concessions to get deals, offering abatements and tenant improvement allowances. 

The average rent in the Financial District was $57.60 a square foot, compared to $83.70 in Midtown, according to Savills. 

While the availability rate will continue to climb in the near term, Dreyer said the market could start to recover in 2023. 

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