Failing banks will empty commercial space

Wall Street’s troubles could start freeing up even more commercial space in the city. Bank of America’s takeover of Merrill Lynch, Lehman Brothers’ bankruptcy and an unsure future for American International Group could create 10 million square feet of empty office space. That inventory would represent 2.2 percent of the total 450 million square feet of Manhattan’s office space. Some brokers expect office rents to decline 15 percent over the next year.