Office Space Continued Returning to Market in April

NEW YORK CITY-Approximately 1.4 million sf of office space returned to the market here in April, bringing the year-to-date gain to 3.34 million sf, most of it in class B buildings. Negative absorption was felt almost equally in Midtown, Midtown and Downtown, although the latter has been hurt the most, accounting for 1.5 million sf of total negative absorption.

The average asking rent of $56.46 per sf in March slipped to $55.86 in April, the largest one-month decrease since the third quarter of 2000. Class B properties logged the biggest downturn, $1.40 per sf, bringing the weighted average asking rent to $47.67 per sf for these properties. Midtown South suffered the most, with asking rents declining more than $2.30 in overall rates.