by Calculated Risk on 7/01/2008 02:29:00 PM

From Bloomberg: Manhattan Office Vacancy Rates Climb to Two-Year High

Manhattan's office vacancy rate rose to its highest level since 2006 in the second quarter as financial firms, beset by losses, fired workers and reduced their office space, real estate brokerage Cushman & Wakefield Inc. said.

Vacancies in the most expensive U.S. office market rose to 7.1 percent from 5.3 percent a year earlier ...

Layoffs do matter. During the last downturn, many companies started subleasing space - and that really hit the office market hard in Manhattan. From what I've heard that isn't happening yet this time.