Downtown office market continues to struggle

By Tom Acitelli, The Real Deal

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Vacancy rates continued to decline while asking rents increased in the Manhattan office market during the second quarter of 2005. Downtown’s asking rents, however, declined.

The vacancy rate for the borough’s office market declined 1.3 percent during the second quarter of 2005 over the same quarter in 2004, according to analysis released today by Grubb & Ellis. The asking rents for Class A office space increased more than $2 over the same periods to $53.34. Class B asking rents hit $38.66 for the second quarter, up from $36.51 during the same period last year.