| Manhattan's trophies still outperform other office buildings, despite a 6.2% decline in asking rents to $103/SF over the past six months. And they'll continue to be attractive, Jones Lang VP Jim Delmonte told us at his E. 53rd Street office before he left for his Northern PA and Canadian vacation (apparently, he couldn't get enough of the recent snow). Landlords are aggressively lowering rents and offering concession packages. Tenants arewaiting for the bottom of the market before making major decisions, but he thinks at that point there will be a flight to quality. |
| Effective and asking rates should continue to fall, bottoming out by the end of '09 and flattening by 2010. Overall Class A rents may decline as much as 25-30%. Other key findings in JLL's biannual Skyline Review: although rent reductions in Manhattan office space will be substantial, trophies should fare better. During the last cycle, Midtown Class A vacancy reached 9.5% while trophy buildings held firm at 7.3%. They alsorebounded faster and steeper; with an 82% asking rent increase from '03-'07 versus Class A's 69%. |
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