That was the upshot of Cushman & Wakefield's latest market report press conference, held yesterday. Ken Krasnow, executive managing director and head of the firm's New York offices, reported that indeed, in the first quarter, Downtown vacancies fell to 12.3% from 13.7% He dubbed it the lowest vacancy rate since in three years.

Three major deals helped "re-energize" the market, he stated. These included law firm Fried Frank Harris Shriver & Jacobson's 328,000-sf deal at One New York Plaza and the 235,000-sf lease for the SEC at Three World Financial Center.

Vacancies in Midtown and Midtown South also showed progress in Q1, with the sub sectors logging at least three-and-a-half-year lows. While Midtown posted a 9.8% vacancy, Midtown South turned in a slightly higher 9.9%. During the quarter, the vacancy for Manhattan overall also fell to its lowest point in three years, to 10.4% from 11%. Overall Manhattan absorption was tracked at 5.8 million sf.

"At the end of last year I could cite positive leasing trends in Midtown and Midtown South," Krasnow said, "but Downtown started falling behind. Today we've seen major commitments by a variety of companies and industries." He noted that those commitments carry the promise of "business growth and investment."