by Calculated Risk on 12/02/2008 08:45:00 PM

From the NY Times: Manhattan Awash in Open Office Space

Almost 16 million square feet is currently listed as available in large blocks in 68 office buildings in Manhattan, according to Colliers ABR, a commercial brokerage firm. That is nearly double the space available a year ago, both in terms of the number of large office blocks — which in New York usually means 100,000 square feet or more — and in terms of total square feet.

And just like in the previous downturn, sublease space is flooding the market:

By far the biggest increase in availability has been in the sublease market. Currently, at least 16 large office blocks are being marketed for sublease in Manhattan, up from just 3 listed at this time last year, according to Colliers ABR.

And rents are down sharply:

Mr. Colacino [president of Studley, a real estate brokerage firm] estimates that the actual rents on deals signed in the last three months are down by as much as 20 to 30 percent from the going rents at the end of the summer ...

There is much more in the article, and it sounds like the situation will get worse next year.