The Real Deal New York

Manhattan office market absorbs vacant space in December: report

January 04, 2012 06:00PM

By the end of December, the Manhattan office market saw 62,117 square feet of positive absorption with gains in Midtown being offset by conditions in Downtown, according to a monthly report by Newmark Knight Frank, released today. The vacancy rate held steady at 7.8 percent from November, the report says, while the average asking rent for space rose to $50.37 per square foot from $49.10 per square foot in November.

The Midtown market also posted its largest one-month gain in absorption since May 2010, with 959,836 square feet of positive absorption. The average Midtown asking rent finished the month at $62.23 per square foot, up from $59.59 in November, and 12.3 percent above December 2010’s figure.

In the Downtown market however, 856,010 square feet of negative absorption took place, mainly thanks to the removal of 70 Pine Street from the Financial District’s office inventory. The average asking rent was $41.71 per square foot, up from $41.55 in November. — Katherine Clarke