The percentage of vacant Class A office space grew to 11.8% in Midtown in December 2016, up from 10.4% the year before.

Tenants returned blocks of office space to Midtown property owners in 2016, while developers delivered new buildings. The end result was a 140-basis-point increase of vacant office space, while rent growth flattened and effective rents dropped.

Midtown submarket asking rents grew more slowly in 2016 than any time in the last six years — before the start of the recovery, increasing just 1.2% on average. Net effective rents shrank 1.4%, as properties offered concessions to attract tenant to fill vacant office space.

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