Sublease Offices in Midtown for Immediate Rent

Midtown Sublease Offices for Immediate Rent

Sublease Offices and direct lease inventory has increased in 2018. The most significant factor behind this is the opening of new commercial towers in the Hudson Yards, World Trade Center and elsewhere in Manhattan.  In the second quarter of 2018 there was 3,051,211 square feet of office space under construction. A second contributor is the “densification” of office premises. In plain terms this means that businesses are reducing the amount of square feet that is leased and allocated to each employee.

As supply of office space increases, pricing per rentable square foot has begun to decline. Costar reports that the average quoted rent for DIRECT LEASES was $60.26 per square foot at the end of Q2 2018. This represents a $0.87 PSF decrease compared to $61.13 in the first quarter. The vacancy rate in the second quarter was 8.1%, up over the prior quarter’s 7.9%. Detailed information about office space in 20 neighborhoods can be found HERE.

At the end of Q2 2018 the amount of SUBLEASE space in NYC increased to 4,828,513 square feet compared to 4,821,279 in the prior quarter. Although pricing for subleases is not published, in most cases they provide a significant cost savings when compared to direct leases. Other tangible benefits may include the following:

(1) Subleases are typically rented in a pre-built condition which can reduce the waiting time needed to move-in.

(2) Many subleases include furniture, an IT network and phones. This amounts to large cost savings.

(3) The length of a sublease term may vary widely from as short as a few months (called “swing space”) to ten years.

(4) Because the transaction expenses associated with a sublease are usually less than a direct lease, the Security Deposit requirements may be reduced.

Midtown Sublease Offices- Recent Listings

Cogent Realty Advisors was engaged by a business services company to identify discounted sublease office space in the 7,500- 10,000 rentable square foot size range in Midtown with a lease term under five- (5) years. The offices needed to be in close proximity to either Grand Central, Penn Station or Port Authority because the staff made frequent use of these transportation hubs. A partial list of our findings follows:

TIMES SQUARE                          7,442 RSF                                      $29.00                                               Term thru 06/22                    (Direct Lease @ $53.00)	Grand Central                      8,200 RSF                        $44.00                                 Term thru 10/20                   (Direct Lease @ $55.00)
Grand Central                          8,570 RSF                      $52.00                               Term thru 03/22                    (Direct Lease @ $65.00)	Fashion District                        7,500 RSF                        $50.00                                 Term thru 12/21                       (Direct Lease @ $56.00)
Penn Plaza                                10,292 RSF                    $46.00                                   Term thru 03/21                         (Direct Lease @ $80.00 PSF)	Call (212) 509-4049 for information about SUBLEASES:  • Any Manhattan neighborhood  • Sizes from 500 RSF and up  • Term 6 months and longer  • Discounted rent

 

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#SubleaseOfficeMidtown

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NYC Office Market Report, Second Quarter 2018

NYC Office Market Report, Second Quarter 2018

NYC Office Market Report, Second Quarter 2018 was compiled using data provided by Costar, the Commercial Real Estate Information Company. This report is written for business owners that need accurate information about the local office market. 

In the second quarter of 2018 the average quoted rent in the NYC office market across all building classes was $60.26 per square foot. This represents a $0.87 PSF decrease compared to $61.13 in the first quarter. The vacancy rate in the second quarter was 8.1%, up over the prior quarter’s 7.9%.

 

NYC Office Market Rents and Vacancy by Neighborhood

Second quarter 2018 average quoted office rents and vacancy by neighborhood is found in the table below.

NOTE: (1) The tables above list the average quoted asking rent reported to Costar. Some office buildings do not publish this information. (2)  After lease negotiation the actual contract rent is usually lower.

 

10 Largest NYC Office Leases Signed in Q2 2018

The Spiral: 2,850,000 SF. Begins Construction 7/2018.

Pfizer, Inc.: 792,000 RSF at “the Spiral” 66 Hudson Blvd in the Penn Plaza sub-market. 

Latham & Watkins, LLP: 407,000 RSF at 1271 Ave of the Americas in the Columbus Circle sub-market. 

Discovery Communications: 360,000 RSF at 230 Park Ave South in the Gramercy Park sub-market. 

J. Crew: 321,732 RSF at 225 Liberty Street in the World Trade Center sub-market.  

Facebook, Inc.: 281,213 RSF at 770 Broadway in the Greenwich Village sub-market. 

 

New NYC Office Building Deliveries

3 World Trade Center: 2,861,402 SF. Delivered Q1 2018. 1,390,000 available for lease. Major Tenants are GroupM and McKinsey & Company, Inc. VIDEO HERE.

 

5 LARGEST NYC OFFICE CONSTRUCTION PROJECTS

There was 3,051,211 square feet of office space being constructed during the second quarter of 2018. 

30 Hudson Yards (500 West 33rd St.):  2,600,000 RSF. Delivery Q3 2019. 100% pre-leased. Developer- Oxford Properties Group. 

One Manhattan West (400 West 33rd St.): 2,216,609 RSF. Delivery Q1 2019.  55% pre-leased. Developer- Brookfield Office Properties. 

Two Manhattan West (385 Ninth Ave.): 1,950,140 RSF. Delivery Q1 2023. 0% pre-leased. Developer- Brookfield Office Properties. 

One Vanderbilt Avenue: 1,732,955 RSF. Delivery Q3 2020. 100% pre-leased. Developer- SL Green Realty Corp., Inc.           

55 Hudson Yards (550 West 34th St.): 1,556,136 RSF. Delivery Q3 2018. 86% pre-leased. Developer- The Related Companies. 

 

Strategies for Reducing NYC Office Expense

(1) Space Reduction and Redesign:  Businesses can reduce the size of their offices by modifying the design and reducing the area occupied by each employee. Use our office space calculator to estimate your essential requirement.

(2) Flex Work, Business Centers and Telecommuting: Flexible work schedules may allow two or more employees to utilize a specific work area. Some companies use hourly or daily rentals at off-site business centers for part-time staff and conferences. Where practical utilize telecommuting.

(3) Relocation: Consider moving from a high rent building to a more economical location. During the current real estate cycle many Class B and mid-block buildings have been upgraded and now provide contemporary work environments and modernized infrastructure at comparatively affordable rental rates.

 

ABOUT COGENT REALTY ADVISORS 

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#NYCOfficeQ22018

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Renting a NYC Law Office, Insights and Trends

Renting a NYC Law Office, Insights and Trends

Renting a NYC Law Office, Insights and Trends is written for legal services firms that need advice on the local office market. Currently, the overarching consideration for small- and mid- size law firms is the high cost of renting office space. At the end of the first quarter of 2018 the average asking rents were $55.00 per square foot Downtown, $62.97 in Midtown, $64.76 in Midtown South and $44.22 Uptown. For detailed neighborhood rental rates link HERE. 

High occupancy costs are having a deleterious effect on law office profitability and the single most effective strategy is to increase office space efficiency. Space efficiency or “space optimization” can be gained through the following: 

(1) Reducing the size of offices: Even the dimensions of a Partner’s office can be reduced and still convey seniority by its location within the work space. Typical Partner office sizes now range from 168 to 225 square feet. Associate offices can be as small as 96 square feet and remain functional.

A sliding door entry maximizes usable internal space.

(2) Alter the construction: The installation of a full or partial glass wall at the front of a windowed office allows light to penetrate to the core of a space where interior offices can be built. For privacy the glass can be frosted.

 

 

(3) Modify common areas: Embrace open seating when possible. Collaboration zones with comfortable seating, a work table and screen enhance productivity and appeal to younger staff. Law libraries are relics. 

(4) Right-size conference rooms: A conference room with a capacity of between 8 and 12 persons is sufficient for most firms. Larger meetings can be held offsite at a conferencing center.

(5) Better utilize support persons: It used to be that there was a 1:1 or 1:2 ratio of assistants to attorneys. With the efficiency gained through technology, the ratio can be as high as 1:6.

(6) Employ technology for mobility and efficiency: Attorneys need to work from anywhere and be connected at all times. Archive file rooms can be off premises in an economical storage facility or saved as a digital file.

AN Efficient Law Office in NYC

Cogent Realty Advisors maintains a database with every law firm spaces currently for lease in Manhattan. These include pre-built offices ready for immediate move-in, build-to-suit spaces that can be custom designed, and short-term furnished subleases.

1,643 RSF	2,066 RSF
3,409 RSF	5,557 RSF
6,465 RSF	7,593 RSF
8,770 RSF	10,776 RSF

 

Alternative Law Office Space

Small law firms that want to avoid long term lease obligations may want to consider an office rental at one of NYC’s many executive office providers. There are locations, environments and pricing to match almost any need. For a mature “law firm only” environment contact Stark Office Suites located at One Grand Central Place.

About Cogent Realty Advisors

Cogent Realty Advisors is an independent and licensed NO FEE Realtor with over 15 years of experience representing businesses that lease NYC office space. Our goal is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#NYCLawOffice

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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