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Manhattan office market suffering

Vacancy rates continued to rise and leasing activity and asking rents fell in November across Manhattan's three main office markets, according to a report from CB Richard Ellis released today.

Overall leasing activity in Manhattan fell to 1.01 million square feet in November from 1.44 million square feet in October, while the vacancy rate rose to 6.9 percent from 6.6 percent between the two months. The average asking rent declined to $68.53 per square foot from $69.10 per square foot.

The steepest decline in activity was in Midtown South, where leasing activity dropped 67 percent between October and November, to 130,000 square feet from 390,000 square feet. The vacancy rate increase was also greatest in Midtown South, to 7 percent from 6.5 percent. The average asking rent in Midtown South declined to $52.46 per square foot from $52.77 per square foot. Downtown saw the greatest rent change. The average asking rent Downtown was $49.19 per square foot in November compared to $50.12 per square foot in October. TRD