According to Colliers ABR report for June, vacancy rates for Class A office
space in Manhattan
saw a decrease of 10 basis points for the first time in a year. Also, the
average asking rent increased for Class A space, jumping a modest $0.14 to
$65.57 per square foot. However, the report, released today, also notes that
these signs of improvement for the commercial sector could be slowed by the
struggling larger economy and housing market. Factors including low consumer
spending rates, the still high unemployment rate, and the high risk of
commercial mortgage defaults, may all be a drag on the commercial real estate
market in coming months, specifically the office space sector, according to the
report. Also, big blocks of space in Lower Manhattan
may return to the market soon, which will raise vacancy rates even higher, the
report says. TRD