Bloomberg.com’s David M. Levitt reported on the latest study of Manhattan real estate. The analysis conducted by real estate brokerage firm Cushman & Wakefield shows that Manhattan has 38% more office space for lease than a year ago. The past year appears shockingly bad, but could have been worse as the market actually took a turn for the better in the late part of 2009. The report tells of stabilization thanks to more signed leases and renewed leases as businesses took advantage of rent offered at 20% lower rates on average. Office vacancy rates stayed at 11.1% for the third and fourth quarters of 2009, down from a peak vacancy rate of 11.4%.

Manhattan is at the heart of many industries including banking, media, fashion and more and is obviously an important indicator for the national real estate market. The concentrated nature of business activity in the area makes us view it as a microcosm of urban real estate, although it is still the most expensive real estate market. The recession, which has been particularly challenging to financial firms, has likely claimed many tens of thousands of jobs in the New York area and is clearly the reason for the rise in vacancy rates.