A fresh Newmark Knight Frank report paints a gloomy future for New York City's office market in the near-term, and it's understandable: Being the world's financial capital has its drawbacks.
Newmark Knight Frank’s outlook for New York City calls for a substantial decline in asking rents despite a moderate level of new development, largely because it is at the epicenter of the financial crisis that is gripping the global economy.
The report forecasts a local office-sector employment drop of 5 to 6 percent before any recovery bgins, and as much as 4 million square feet of new space will likely come online in 2009 or early 2010. At the same time, asking rents will decline "substantially," and the "peak to trough decline in asking rents will be much larger, and the fall in effective rents will be larger again." read more »