Good News: Vacancy Down; Bad News: Rents Down



skyline Good News: Vacancy Down; Bad News: Rents DownNew York’s office market is, surprise surprise, still adrift, according to real estate brokerage Cassidy Turley’s May 2010 report, appropriately titled, “Month of Ups and Downs.”

SEE ALSO: Midtown Vacancy Is Higher Than Midtown South and Downtown

On the one hand, vacancy rates dropped—a good thing:

By the close of the month, the Manhattan Class A vacancy rate had eased to 12.2%, down 30 basis points from April while the overall figure declined to 13.1%, down 10 basis points. Class A direct availability closed the month at 19.2-mm-sf, down from 20.1-mm-sf in April while Class A sublet availability actually posted an increase to 9.7-mmsf from 9.6-mm-sf, its first climb since October of last year.

On the other hand—alas!—rents are still falling:

Though a number of landlords claim to be raising their asking prices, the Class A figure still showed a slight decline for the month, falling to $58.72/sf from $59.31/sf with overall pricing also recording a minor drop to $48.42/sf from $48.82/sf.

More fun facts here.

drubinstein@observer.com