Class A vacancy dips to lowest level since ’01

The Manhattan Class A office market is tightening as asking rents for the prime space stay generally steady. Manhattan’s Class A vacancy rate dropped in October to its lowest level in almost four years, according to recent numbers from Colliers ABR. The Class A vacancy rate at the end of October was 8.2 percent, its lowest point since December 2001 and down from 9.2 percent in September.

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Big leases inked in October and dropping sublease availability spurred the vacancy rate decline, according to Colliers ABR. Citigroup leased 300,000 square feet in 485 Lexington Avenue in the month’s biggest lease, and American Expressed signed up for 200,000 square feet in 3 World Financial Center. Sublease availability for Manhattan was 6.8 million square feet by the end of October, its lowest since the 6.4 million of August 2001.more