Midtown Class A office vacancy drops to 11 percent in November

December 12, 2011 12:13PM

In Midtown Manhattan, Class A office vacancy decreased in November to 11.1 percent, its lowest level since 2008, according to a monthly Manhattan office report from commercial brokerage Jones Lang LaSalle, released today. But despite the decline in vacancy rates, momentum seems to have generally slowed since the first half of the year, the report shows; Class A average asking rents increased marginally for the month to $70.36 per square foot from $70.28 per square foot a month earlier.

In Midtown South however, Class A vacancy rose to 6.3 percent from 4.6 percent last month largely due to the addition of a large block of space at 101 Sixth Avenue at Hudson Square. Asking rents for the area also spiked, jumping from $47.07 to $58.97 per square foot. A handful of buildings even posted rates greater than $65.00 per square foot.

Downtown, the vacancy rate remained under the 10 percent threshold, finishing at 9.9 percent. Class A vacancy remained flat at 8.7 percent, while Class B increased to 11.9 percent from 11.5 percent, mostly due to an unspecified large block of space coming on the market in the Financial District. Class A rents climbed to $42.31 per square foot from $41.65 per square foot a month earlier. — Katherine Clarke