Office vacancies in Brooklyn are expected to decrease
to 8.3 percent by year’s end, down by 160 basis points compared to last
year, according to a market report released by brokerage Marcus &
Millichap. The third quarter market report said that the tightening in
inventory is largely due to a decrease in construction this year. Only
20,000 square feet of new office space is expected to come online by
the end of 2007, compared with 165,000 square feet built in 2006.
The report estimated that employment growth for office jobs this year
doubled to 1,600 new hires, compared to 800 last year. But a slowdown
in employment is predicted for 2008. The report also predicted a 4
percent climb in Class B and C office rents in the borough, to $26.43
per square foot. Class A rents fell slightly in the third quarter to
$30 per square foot, from $30.75 in the same period last year. TRD