Office rents may fall 25 percent by 2010

Office rents in Manhattan
may fall 25 percent between now and mid-2010, Colliers ABR predicted in
a
report released today, due to job losses and a financial industry-led
recession. A separate report released today by Williams Real Estate
says
commercial vacancy rose
to 9.7 percent in the third quarter from 9 percent in the
second quarter of this year, the largest increase in more than six
years. Average
rents in the third quarter were $65.40 per square foot, down 2.5 percent from
$67.06 in May.