Manhattan Office Vacancy Rises Most in 3 Years on Job Cuts
October 2, 2012
By: David M. Levitt
Manhattan’s office vacancy rate jumped the most since 2009, when the market was reeling from the U.S. credit crisis, as financial companies cut jobs and tenants held back from taking space amid concern the economy will slow. ...
... Landlords with large vacancies or developments in progress -- such as Brookfield Office Properties Inc. (BPO), Silverstein Properties Inc. and Related Cos. -- would be wise to cater to the demand from so-called creative companies, which have started to shop for space outside midtown south, said Steve Coutts, senior vice president for research for brokerage Studley Inc.
The new projects are “needed even though the availability is increasing,” said Coutts, whose company specializes in representing tenants. “It’s very important to these tech and creative companies to the extent that these spaces offer open floor plans that they’re looking for.” ...
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