Downtown office market tighter than Midtown for first time since 9/11

The office market in Downtown Manhattan had a lower overall vacancy rate than the Midtown market in 2007, for the first time since September, 2001, a Alliance of Downtown New York report claims.

The year-end report showed that Downtown had a 7.6 percent vacancy rate last year, compared to a 7.7 percent rate in Midtown.
 
Downtown saw 412,108 square feet of office leasing activity in the fourth quarter of 2007, the report said, including two major relocations from Midtown: Omnicom’s 180,000-square-foot lease at 195 Broadway and American Lawyer Media’s move to 120 Broadway.

Retail leasing was up in Downtown in the last quarter of the year. Store openings and new lease announcements included Barnes & Noble, Bed Bath & Beyond and Whole Foods at 101 Warren Street; and Haru Sushi at 1 Wall Street Court, among others.
 
The submarket hotel development in the neighborhood is expected to add 1,972 rooms by 2010. TRD