Job losses could result in 17 percent office vacancy rate, Cushman predicts

In a worst-case scenario office vacancy rates, which now stand at 10.5 percent, would hit 17 percent if an additional 125,000 office workers in New York City were laid off, according to a new report from commercial real estate firm Cushman & Wakefield. Those losses would be in addition to the 60,000 jobs that have already been cut. A less dire scenario in which 40,000 additional workers were laid off would send the vacancy rate to 13.2 percent. Also included in the Cushman & Wakefield mid-year market report was the extremely weak investment sales market. Total volume was just $1.8 billion, down 95 percent from the peak in 2007, and down 90 percent from the average from 2004 to 2008, the report said. The top building sales which closed this year were Worldwide Plaza at 825 Eighth Avenue for $605 million, and 1540 Broadway for $355 million. TRD