Midtown office rents plummet as vacancies skyrocket, report shows

TRD 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

(Credit: iStock)

The city’s rental growth is slowing

William Shanahan (Photo by Studio Scrivo)

The Closing: Bill Shanahan

Clockwise from left: 135 S. Lasalle, 115 S. Lasalle, 400 S. Lasalle (Credit: Google Maps)

Chicago office landlords must solve a 2M sf problem before it’s
too late

In the third quarter of 2019, nine sales totaling $587 million closed in the central business district (Credit: iStock)

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

111 West 57th Street (Credit: iStock)

Another legal door closes for jilted investor at 111 West 57th Street

113-119 East 55th Street and Arthur Zecekndorf of Zeckendorf Development (Credit: Meridian Investment Sales and Getty Images)

These are the details on Zeckendorf Development’s latest residential project