Daily Real Estate News  |  November 5, 2007  |   Manhattan's Office Market Chugging Along
The commercial real estate business in Manhattan is slower than it was last year, but above the average rate for previous years, according to data released by real estate services firm Cushman & Wakefield.

The third quarter showed an improvement over the first two quarters of the year. About 6.5 million square feet of space was leased in the third quarter, compared with 6.3 million square feet in the second quarter and 5.4 million square feet in the first quarter.

The space leased this year is 12 percent below the 20.9 million square feet leased during the same period last year, but above the five-year rolling average of 18.2 million square feet, Cushman & Wakefield reported.

Asking rates, particularly in Midtown, have climbed 40.5 percent to a record average of $74.47 per square foot with an overall vacancy rate of 5.6 percent, close to the record low.

The demand for luxury space also is continuing. Cushman & Wakefield recorded nine deals in the third quarter above $150 per square foot, which is considered to be the top pricing bracket.

Source: Real Estate Weekly, Daniel Geiger (10/10/2007)