Banks' Uncertainty Drives Up Midtown Office Vacancy

More top Midtown office space opened up in May as the Class A vacancy rate there rose for monthly and annually. The rate increased from 6.5 percent in April to 7.1 percent, according to a new report from Colliers ABR.

The ongoing uncertainty amid the financial services sector drove the Class A vacancy increase, according to the report. JPMorgan Chase chose not to renew a lease for 291,000 square feet at 345 Park Avenue; and Bank of America plans to vacate 116,000 square feet at 9 West 57th Street in anticipation of its relocation to One Bryant Park.

The Class A vacancy rate for all of Manhattan increased from 6.3 percent in April to 6.9 percent in May (also up from May 2007). And the overall vacancy rate increased monthly from 8.3 percent to 8.5 percent, and annually from 7.1 percent.