Office vacancy reaches 12% in Manhattan

Source: Cassidy Turley

Manhattan office vacancy rate climbed in January, according to Cassidy Turley’s monthly market report, reaching 12.2 percent. This 20-basis-point climb, according to the report, is due in part to two major chunks of office real estate to hit the market last month: a 612,000-square-foot space formerly occupied by Pfizer at 685 Third Avenue between 43rd and 44th streets, and a 250,000-square-foot space at 1745 Broadway on the corner of 56th Street. The average asking rent, however, saw a slight month-over-month increase, reaching $48.12 per square foot from $47.66. Despite its past performance, the Downtown office market saw the lowest class a vacancy rate in January, dropping 40 basis points to 11.4 percent. Midtown and Midtown South saw 11.5 and 11.9 percent vacancy rates, respectively. TRD