In Midtown, where the vacancy rate at the fourth quarter in 2004 stood at 9.3%, it's now 6.6%. Asking rent for class A space in the fourth quarter was $64.68, as compared to $63.76 in the third quarter. For the fourth quarter of 2004, average asking rent was $59.78. Total absorption at the end of 2004 was 4.1 million; at the end of 2005, absorption was 5.7 million.

For Midtown South, class A average asking rent in the fourth quarter was $40.64. That represents an increase from $38.33 in the third quarter and $34.13 in the fourth quarter of 2004. Total absorption in 2005 was 2.7 million sf, as compared to 958,750 sf in 2004. The average asking rent for class A space in Lower Manhattan was $36.59 per sf in the fourth quarter of 2005. That represents an increase from $35.64 in the third quarter, but a slight decrease from $36.76 for the fourth quarter of 2004. However, the area has experienced absorption of 940,768 sf in 2005, as opposed to negative absorption of approximately 1.3 million sf in 2004.

According to Marcus & Millichap research, total employment in Manhattan at year end was expected to rise 1.7%, which represents 69,000 jobs. Additionally, office completions rose from 1.2 million sf in 2004 to 1.4 million sf in 2005. The firm expected asking rents to climb 1.9% to $43 per sf at year end. Effective rents were expected to be $36.55, an increase of 2.2%.