last month's prediction

The overall vacancy rate also increased, up to 10.4% in July from 10.2% in June. This rise is attributed to negative absorption in Midtown and Midtown South, which saw a 0.6% vacancy increase during that period. A majority of the new space is attributed to the Bank of New York's decision to vacate a combined total of 250,670 sf from 63 Madison Ave. and 75 Varick St. The Bank took 186,000 sf at Manhattan Mall in January of this year.

The class A asking rate in the city sits at $55.57 per sf, while class B and C asking rates are at $40.22. Roughly 1.5 million sf was leased or renewed in July, more than doubling the transaction volume for June.

Downtown posted a positive absorption for only the second time this year, albeit a meager 61,803-sf increase. The debate over how to proceed with the redevelopment of office and residential space in Lower Manhattan continues, as a new RFQ was issued just last week. Vacancy rates Downtown continue to be the highest in Manhattan, at 12.9%.