More bad news for NYC real estate, this time on the commercial side. All those vanishing hedge funds means less pricing power for office building owners:
Crain’s: Enormous growth in sublease space pushed Manhattan office rents to their biggest quarterly decline in 25 years as they fell 6% in the first three months of this year, according to a report released Tuesday by Cushman & Wakefield Inc.
Rents fell to an average of $65.01 a square foot in the first quarter, and the $4.43 drop from the end of 2008 was the largest quarterly descent since Cushman began keeping records in 1984. Read the whole thing >
Cushman & Wakefield expecs rents to ultimately fall 30% from its peak.