Midtown office rents plummet as vacancies skyrocket, report shows

New York /
Nov.November 06, 2009 05:22 PM

Just one month after declines in rents in Midtown seemed to be leveling off, the average asking rents in October fell sharply as vacancies rose by their largest amount in nearly a year, a new report by commercial services firm CB Richard Ellis shows.

The average asking rent in Midtown fell by 99 cents per square foot in October to $56.89 per square foot, while the vacancy rate rose by .7 points to 10.3 percent, the CBRE report, covering October, shows (see the full report below).

In September, brokers were buoyed by statistics that showed the average asking rent in Midtown declined by just 6 cents per square foot, to $57.88 per foot. But that price support did not continue last month.

The price decline in Midtown was the largest since August when it fell $1.46 per square foot, the figures show.

The increase in vacancy is the largest since December 2008, when the rate rose 1 point to 7.6 percent from 6.6 percent a month earlier, CBRE data shows.

The weakness was not as pronounced in Manhattan overall. The average asking rent fell by 88 cents per square foot from September to October, and the vacancy rate rose by .5 points to 9.8 percent. TRD
November 2009 Snapshot


Related Articles

arrow_forward_ios
People, apartments
NYC’s millionaire renters on the rise
NYC’s millionaire renters on the rise
RXR's Scott Rechler (Getty)
RXR in talks to surrender two office buildings to lenders
RXR in talks to surrender two office buildings to lenders
(Photo Illustration by The Real Deal with Getty)
Office attendance finally reaches 50%
Office attendance finally reaches 50%
Vornado's Steve Roth with 1540 Broadway
Vornado writes down portfolio by $600M
Vornado writes down portfolio by $600M
Boston Properties' Owen Thomas (Boston Properties, Getty)
The commercial real estate recession is here: Boston Properties
The commercial real estate recession is here: Boston Properties
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Tri-state rents are up and down — at the same time
Tri-state rents are up and down — at the same time
From left: Värde Partners’ IIfryn Carstairs and Hawkins Way Capital’s Ross Walker along with 525 Lexington (Getty, Värde Partners, Hawkins Way Capital, Google Maps)
Hawkins Way, Värde buy defunct Marriott East Side hotel
Hawkins Way, Värde buy defunct Marriott East Side hotel
New York Community Bank CEO Thomas Cangemi
NYCB slashes 10% of staff as resi mortgages slump
NYCB slashes 10% of staff as resi mortgages slump
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...