The Midtown office market ended the third quarter 2008 with a vacancy rate of 15.56%. This vacancy rate represented a 0.36 percentage point decrease over the previous quarter, when it was 15.92%. The decrease in vacancy occurred in a quarter where Midtown saw positive 52,746 square feet in net absorption and no new deliveries. Quoted rental rates ended the third quarter 2008 at $24.52 per square foot, down from $24.89 per square foot in the second quarter 2008. At the end of the quarter, there was 785,000 square feet under construction in the Midtown office market.

Class A projects in Midtown reported a third quarter 2008 vacancy rate of 18.94%, down from the 19.95% reported at the end of second quarter. Net absorption within the class A sector totaled positive 99,556 square feet for the quarter, and no new deliveries were reported. Quoted rental rates for available space within the class A sector averaged $25.15 at the end of the quarter, down from the $25.34 that was reported in the second quarter. There was 785,000 square feet under construction in the class A market at the end of third quarter.