Downtown commercial market to fare healthiest in 2008

Manhattan’s office vacancy rates are expected to increase slightly to
7.2 percent in 2008, from an average of 7.1 percent in the first 11
months of 2007, according to Colliers ABR. The brokerage also predicts
that the city’s average asking rent will increase by around 8 percent
in 2008, after averaging $59.60 per square foot this year. Downtown is
the submarket with the greatest outlook next year, according to a CB
Richard Ellis prediction that average rent there will jump to $53 per
square foot and vacancy will drop to 7.5 percent by the end of 2008.