Office Vacancy Remains Low in Manhattan, But More Wall Street Job Cuts Expected

NEW YORK, N.Y., Aug. 6, 2008 — Following an extended period of strengthening property fundamentals, the Manhattan office market is now faced with some near-term uncertainty, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(New York Stock Exchange building at top right)

Employment, the key determinant space demand, remains positive when viewed during the past 12 months.

Recent reductions by Wall Street firms, however, have yet to be fully accounted for in current statistics.

“Despite low initial yields, investors will remain active in Manhattan,” says Edward Jordan, regional manager of the Manhattan office of Marcus & Millichap. “Favorable current valuations will continue to encourage foreign buyers, who will target top-tier properties.”

Following are some of the most significant aspects of the Manhattan Office Research Report:

· Builders will bring 2.3 million square feet of office space online this year.
· Vacancy is forecast to end the year at 6.2 percent.
· Asking rents are projected to climb 6.2 percent this year to $67.52 per square foot.
· Effective rents will add 6.4 percent to $59.94 per square foot.
· The median price of properties sold during the past year is $648 per square foot, 27 percent more than the median price one year earlier.

For a copy of the complete Manhattan Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716