New York City Office Rental Report July 2020
New York City Office Rental Report July 2020 is presented by Cogent Realty Advisors, Inc. Cogent Realty Advisors is a licensed and independent no fee Realtor with 20 years of experience representing businesses that lease NYC office space. Our goal is to find you the right office at the right price.
For information phone (212) 509-4049.
The Covid 19 health crisis is having a profound effect the economy of New York City. The long term impact on the office rental market remains unknown. Our common-sense predictions follow:
♦ The pandemic will result in a more favorable office market for Tenants that execute new leases and renewal leases.
♦ In the coming months the NYC office market “at large” will offer:
(1) Increased space availability;
(2) Modest reductions in asking rents and negotiated contract rents;
(3) Increased Landlord incentives for new leases and renewal leases. These may include free rent and cash contributions for the renovation of an office.
(4) Increased flexibility in lease terms, especially duration.
♦ The magnitude of the changes in the office market will be contingent upon the duration and severity of the pandemic.
♦ Sublease office space availability will increase and be offered at a discount. Link here for information about Sublease Rewards and Sublease Risks.
♦ Other significant factors influencing the overall NYC office market include:
(1) The success/efficiency of corporate directed full- and part-time work from home strategy;
(2) Whether the reduction in office headcounts that are needed to meet social distancing requirements will result in the leasing of additional office space square footage;
(3) Whether decentralizing office occupancy by relocating employees to suburban locations gains traction; and
(4) Will co-working operators that occupy million’s of square feet of NYC office space terminate certain leases and increase the quantity of vacant space on the market.
NYC Office Rental Data
CoStar, the world leader in commercial real estate information reports the following New York City (Manhattan only) office market indicators on July 13, 2020:
In the News
Uncertainty Plagues New York City’s Office Market in the Second Quarter. Costar July 14, 2020
Manhattan office leasing lowest since Great Recession. Crain’s July 1, 2020
Remote Work Is Here to Stay, But Office Footprints Likely Won’t Shrink. GlobeSt.com June 29, 2020
About Cogent Realty Advisors, Inc.
Cogent Realty Advisors is an independent and licensed no fee Realtor with 20 years of experience representing businesses that lease NYC office space. We offer solutions for office Tenants seeking stability and value in uncertain times. For information phone Mitchell Waldman at (212) 509-4049.