According to Peter Von Der Ahe, director of the NationalMultiHousing Group in Marcus & Millichap Real Estate InvestmentService's Manhattan office, the financial services industry hasprovided roughly 25,000 new jobs over the past five years. However,any scaling back in the sector could have a trickle down effectcausing other areas, like the legal sector, to readjust their spaceneeds as well.

"I think the biggest question in the market right now is howwill the uncertainty in the credit markets affect the market," VonDer Ahe tells GlobeSt.com. "Will the recent turbulence in thecredit market cause downsizing in the financial services industry?If what happens now, and over into the fourth quarter, will itaffect space needs in 2008? That is the biggest unknown in themarket right now."

However, despite the concerns for the office market over thenext six months, Von Der Ahe explains the long-term prospects forManhattan remain solid. "All this is very short term. The long-termprospects are really healthy in all the submarkets," he says."There is no space left in Manhattan."