Even to industry veterans who have lived through other downturns,
the precipitous decline in the Manhattan office market, especially in
Midtown, has been startling.
According to Studley, a national brokerage firm that represents
tenants, asking
rents in Manhattan over all declined 4.4 percent from the third quarter
to the fourth quarter, with the decrease in Midtown even more
pronounced, 8.3 percent, the steepest since 2001.
And with many New York building owners facing enormous financial difficulties, companies seeking space are asking
questions about the creditworthiness of a prospective landlord, several
brokers said. Real Capital
Analytics recently estimated that at
least $12 billion worth of commercial property in the area is already
or potentially in trouble.