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Report: Manhattan office demand strong

Demand for Manhattan office space remains strong and
will dip only slightly in the new year, according to a third quarter
report by Marcus & Millichap Real Estate Investment Services. By
year’s end, Manhattan employers were expected to have created 36,000
jobs for a 1.5 percent gain, the report said. A limit of new supply and
strong demand were expected to lower the vacancy rate in 2007 by 100
basis points to 6.3 percent. But the global financial markets’
turbulence could lead to job cuts in the financial services sector,
which could tamp down demand for office space.

A total of 1,000 square feet of for-lease office space was expected to
be built in Manhattan this year. Asking rents jumped by 18 percent this
year to $60.71 per square foot, the report said, while effective rents
were expected to increase 20.8 percent to $54.15 per square foot. TRD

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