Manhattan Office Rents Fall Most in 20 Years on Fewer Leases
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Manhattan office rents fell the most in at least two decades last quarter as Wall Street securities firms cut jobs and tenants leased less space, reported Cushman & Wakefield.
Cushman & Wakefield said Q4 rents dropped 4.8% to $69.44 a square foot from Q3. The report said
leasing slid to the lowest since 2001 as companies signed up for 19.1 million feet of space last year.
Lehman Brothers Holdings Inc.’s bankruptcy, the acquisition of Merrill Lynch & Co. and the plunge in U.S. stocks last year contributed to the highest vacancy rates in New York City, where most of the banking firms reside.
"The majority of tenants in the market for office space have been employing a cautious ‘wait and see’ attitude,” Joseph Harbert, chief operating officer of Cushman’s New York metro region, said in a statement. “As vacancy increases and rents begin to soften, activity has been driven by those tenants nearing lease expirations who have no choice but to make a decision, as well as those who see real value and opportunity in the market.”
The amount of space tenants put on the market for sublease more than doubled last year to 8.2 million square feet. More than 31 million feet of space is now available in Manhattan, a
43 percent jump over year-end availability in 2007.
Cushman & Wakefield said Q4 rents dropped 4.8% to $69.44 a square foot from Q3. The report said
leasing slid to the lowest since 2001 as companies signed up for 19.1 million feet of space last year.
Lehman Brothers Holdings Inc.’s bankruptcy, the acquisition of Merrill Lynch & Co. and the plunge in U.S. stocks last year contributed to the highest vacancy rates in New York City, where most of the banking firms reside.
"The majority of tenants in the market for office space have been employing a cautious ‘wait and see’ attitude,” Joseph Harbert, chief operating officer of Cushman’s New York metro region, said in a statement. “As vacancy increases and rents begin to soften, activity has been driven by those tenants nearing lease expirations who have no choice but to make a decision, as well as those who see real value and opportunity in the market.”
The amount of space tenants put on the market for sublease more than doubled last year to 8.2 million square feet. More than 31 million feet of space is now available in Manhattan, a
43 percent jump over year-end availability in 2007.
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