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The summer months are typically the slowest for the office market in Manhattan. But even in a slower leasing environment, Downtown saw a decrease in vacancy rates for all building classes for the third consecutive quarter, according to Jones Lang Lasalle, a financial and professional services firm specializing in real estate.
Class A vacancy rates dropped to 8.9 percent this quarter, a decrease of 2.3 percent from the previous quarter. Downtown’s Class B vacancy rates fell to 12.2 percent in the third quarter of the year — a drop of 18.1 percent.
While the vacancy rates declined, the average asking price for rental space increased. James Delmonte, vice president and director of research for Jones Lang LaSalle’s New York office, attributed the increase in rent to two factors.
“Higher-priced space at Seven World Trade Center was leased up, while space priced above average came to the market at One World Financial Center,” said Delmonte.
“The Downtown market is likely to experience both higher vacancy rates and higher rents in the near-term as quality space is anticipated to come to market.”