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Midtown May Hit $200 Per SF by Year End

NEW YORK CITY-While statistics show vacancy rates just slightly below the so-called equilibrium, prime Midtown office space may demand unprecedented dollars in the near future.

By Tom Sosnowski | Updated on July 13, 2006

NEW YORK CITY-Midtown Manhattan office vacancy has dropped below 7% and the rental market has, to the some extent, lurched to favor the landlord. But the most startling rent reality may be yet to come; and it may come sooner than expected.

Cushman & Wakefield earlier this week released second quarter statistics for the Manhattan office market showing Midtown vacancy rate dropping to 6.9% at midyear, down from 7.8% at the end of the first quarter. This decline brings the overall Midtown vacancy rate below the 7% to 9% range, which is typically described as equilibrium, for the first time in five years.

“A shortage of high-quality available space in Midtown and a lack of new product on the horizon have given landlords the upper hand,” says Joe Harbert, Cushman & Wakefield’s chief operating officer for the firm’s New York Metro Region.

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