The Real Deal New York

From the January issue: Recent bad news for Wall Street may mean good news for Manhattan’s congested office markets. By late December, the major financial houses had lost more than $40 billion related to the subprime mortgage crisis, which may force tens of thousands of people out of work in Midtown and Lower Manhattan. The possible resulting layoffs have led brokers to believe that Wall Street firms will try to sublease some of their unused trading floors. New office inventory couldn’t come at a better time for the Manhattan market. According to a report by Cushman & Wakefield, asking rents in Manhattan hit $62.91 in the third quarter, representing a new record. The jump of 37.2 percent from the year-ago quarter was the biggest annual increase ever recorded.