City Predicts Office Rents Falling $15 a Foot, Vacancy Soaring to '03 Levels

In Mayor Bloomberg's gloomy mid-year budget modification press conference today, he showed two graphs on the commercial real estate market that were less than bullish.

Based on the graphs, the city is projecting that vacancy will rise substantially from the sub-6 percent rates seen for Class A space in 2007 to more than 12 percent by mid-2009, a level last seen in 2003 and early 2004. Asking rents, currently over $80 a foot, are projected to fall to less than $70 a foot by late-2009.

In terms of mega-investment sales of $500 million or more, the Bloomberg administration sees a major drop-off for the current fiscal year, which ends in June.  read more »

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