The long-expected return of unneeded office space to the Downtown market by large financial firms may push vacancy rates up by two-thirds, a Cushman & Wakefield expert in the market said today.
Andrew Peretz, executive director at commercial services firm Cushman & Wakefield, predicted the vacancy rate, now at 9.6 percent Downtown, could reach 15.75 percent, a jump of 64 percent.
That increase in the vacancy rate would drive down prices, he said.
“I do think there will be a decrease in asking rents over the next two or three quarters,” Peretz said. He was speaking this morning at the firm’s fourth-quarter market briefing at the company’s Midtown headquarters.
For Manhattan overall, the situation was not as bleak, although prices may not rise for more than a year and a half, Cushman & Wakefield COO Joseph Harbert said at the same event. … [more]