Manhattan office market vacancies could rival 90s

Reuters reports:

The availability rate of office space in Manhattan hit 12 percent in the first quarter and could soar to levels unseen since the early 1990s, as massive layoffs prompt tenants to shed space, according to a report from a real estate services firm.

The space availability rate -- which includes vacant space plus space that will become available within a year -- in the first quarter rose 1.1 percentage points from 10.9 percent the prior quarter, wiping out much of the improvement in office occupancy gained from mid-2005 through 2007, FirstService Williams said in a report released on Monday.

"It could spike to 17 percent the first half of 2010," said Robert Freedman, FirstService William's executive chairman. "It would be pretty much at parity at what it is was in 1989, '90 and '91.