The Real Deal New York

High-end office leasing slide continues

February 11, 2009 06:13PM
By Adam Pincus

No region of the Manhattan office market was immune to the continued decline in asking rents and increase in vacancy rates in the high-end office market last month.

The vacancy rate for Manhattan Class A properties rose in January to 10.2 percent, cracking through the 10 percent ceiling for the first time since November 2004, according to a new report from real estate services firm Colliers ABR.

The overall vacancy rate in the borough was 11.3 percent, up from 10.4 percent the month before, and average asking rents dropped by $1.03 to $59.30, the report said.

In Midtown, the Class A vacancy rate jumped sharply to 11.3 percent in January from 9.9 percent in December; in Midtown South the vacancy rate rose a smaller amount to 11.9 percent from 11.4 percent; and Downtown, the average Class A asking rent fell 8.5 percent between December and January to $56.53, the report said.

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