Midtown office rents drop 

From the March issue: The Manhattan office leasing market as a whole remained fairly static between December 2007 and January 2008, according to CB Richard Ellis’s latest monthly market report, although a drop in asking rents in Midtown could be the first glimpse of larger troubles to come. Leasing activity in the borough was almost unmoved in January, down 30,000 square feet from the previous month to 2.2 million square feet. That was up 41 percent from 1.56 million square feet leased in January 2007, the report said. Expected layoffs in the financial services industry, which would decrease demand for space and impact the market as a whole, have not yet been realized, brokers say. In light of these predictions, however, some more cautious landlords are anxious to make deals, which has given tenants more bargaining power.