Commercial real estate uptick's downside
September 11, 2011
By: Theresa Agovino

Brokers greeted the sharp pickup in leasing of Manhattan office space last year as a sign of the commercial market's rebirth. Despite that impressive gain, however, the amount of available space has actually risen by 31%—11 million square feet—since 2008 as more tenants vacated than leased, according to a report by Studley.

“Last year was a big leasing year, but when all is said and done, there are still buildings with a lot of empty space,” said Greg Taubin, a senior managing director at Studley. ...

... In the prime area between Fifth and Second avenues from East 39th to East 50th streets, for instance, there are 11 buildings that each have 200,000 square feet or more for lease, according to Studley.

Mr. Taubin says availability has increased as the recession's effects linger. Much of the vast acreage once occupied by Lehman Brothers, for example, remains vacant. ...

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