Continued Wall Street layoffs and the new Federal White Paper requiring financial firms to be diversified geographically are adding additional pressure on an already saturated leasing market.

Midtown sublease prices in Class “A” (Fancy new building) buildings are amazingly low. Prices at the top Class A buildings are now one half to one third of what they were a year ago.

Prices continue to drift downward as companies are holding off on finalizing leasing decisions. Leasing inquiries are up as firms are exploring the attractive pricing that is available both in Midtown and Downtown. Wall Street layoffs and the new Federal White Paper requiring financial firms to be diversified geographically are adding additional pressure on an already saturated leasing market.

Prices continue to drift downward as more space comes on the market and companies are being cautious in making new commitments. Amazing prices are showing up in both sublease and in the direct space markets all over town. Quality subleases are available in the mid to high teens in B buildings, and nice subleases in A buildings, in the mid 30's to low 40's.

Commercial vacancies continue to mount as more space continues to come on the market. As a result prices continue to moderate. Class A vacant space downtown increased by 20%, overall space downtown by 8%. Total Class A vacancies increased by 6% and Total Market vacancies increased by 2.6%.

Prices continue to slide as the amount of vacant space continues to rise with rents now being 50% lower than a year ago. Prices are down by 20% around Grand Central, Penn Station and on the East and West 57th Street corridors where buildings are in demand near where people live or commute from.

Effective rents of Downtown spaces with economic incentives are phenomenal deals. Direct and Subleases are available from $17-30/RSF. And incentives are available which are worth up to $11/RSF. The combination of low rents and incentives makes Downtown rents the cheapest in decades.

Phenomenal prices abound for commercial space throughout Manhattan.

Market activity was up dramatically last month, after being subdued for three to four months. Total available space was reduced by six million square feet, for a decrease of 10%. Most interestingly, one million more square feet of Class A office space (new office buildings) was put on the market.

Market availabilities are relatively unchanged in past 30 days with prices drifting slightly downward.

3,500,000 feet in the most desirable office buildings and 4,500,000 feet of Class B and C office space have been added in the past 30 days . Over the past month negotiated rents continued to fall by an average of 5-10%.

Rental prices continue to moderate with more free rent and work being offered. Over the past month negotiated rents have fallen by 5-10%.