Manhattan office vacancies lowest in 6 years

Manhattan’s office vacancy rate has fallen under 7 percent for the first time since 2001 and could drop more this year, driven by strong job growth, according to a second-quarter report released by Marcus & Millichap Real Estate Investment Services. Some investors that recently purchased office buildings have scrapped plans to convert them to residential use. Other buildings have been re-sold to office investors, such as the International Toy Center on Madison Square Park at 200 Fifth Avenue, that the Chetrit Group sold to L & L Holding Co for $500 million. The report also predicted that office employment in Manhattan would increase by 17,300 positions, and asking rents would increase 15.2 percent to $59.27 per square foot. TRD