Brooklyn Office Vacancy, Asking Rents Increase

The local economic woes are impacting not just Manhattan's faltering office market.

The Brooklyn office market vacancy rate ended the first half of 2008 slightly higher than at the same time last year and it's expected to rise more before the year is out, according to a new report. The report (PDF), from investment-sales firm Marcus & Millichap, forecasts a year-end vacancy rate of 10.5 percent, up from the 10.4 percent at the end of the second quarter on June 30.

As many as 2,000 office-based jobs in Brooklyn are expected to be eliminated this year, according to the report, mirroring the trend in Manhattan.

Meanwhile, the average asking rent for Brooklyn office space has increased in 2008. It was $27.58 a square foot by the end of the second quarter, up 5.1 percent annualy and 4.9 percent since January.