Manhattan Office Space Increases Post-Sept. 11

The effects of the September terror continue to linger for New York City landlords. Top that off with an economic downturn, and the Lower Manhattan real estate market is feeling the pinch.

Perhaps most surprising is that many firms displaced by the World Trade Center attacks -- while scrambling to find new space -- are making do with significantly less square footage than before.

The six buildings that made up the World Trade Center complex contained nearly 13.4 million square feet of office space that was 97% leased. However, data from real estate consultants Grubb & Ellis suggest that displaced tenants have signed leases for about 39% of the space leased prior to Sept. 11. In fact, though the terrorist attacks destroyed or damaged nearly 35% of Downtown Manhattan office space, the drop in demand has been even greater. ...