Penn 1 Office Sublease Guide

Penn 1 Office Sublease Guide from $40.00 SF

Photo courtesy Costar, the Leading Provider of RE Data

Penn 1 Office Sublease Guide from $40.00 SF reports on high quality occupied work spaces that are now listed for sublease due to the impacts of the Covid-19 pandemic. For forward looking firms, a return to a central office (post vaccine) is inevitable. At this moment in the real estate cycle exceptional values can be secured by subleasing a discounted fully furnished office.

Use this link for Cogent Realty’s analysis of Sublease Rewards and Risks.

 

 

 

 

 

 

 

 

Working at Penn 1

• Ultra- accessible location at Penn Station  minimizes commuting time

• 695 car underground garage

• Owned and managed by Vornado, a publically traded company

• Class A high quality full service office environment

Penn 1 is undergoing a $200M transformation into an ultra-modern corporate campus.

• 24/7 access, concierge attended lobby and security monitoring

• Telecom providers include Verizon, Cogent, MCI/Verizon Business, Time  Warner Telecom, Con Ed, AT&T, Time Warner Cable, Direct TV, Light Tower

 

 

Offices for Sublease at Penn 1 

In a distressed market like what we are experiencing in 2020, sublease rents are often heavily discounted. According to a recent report in Globe St.com  “Class-A asking rents in CBD markets are down by 2.7%, while sublease space is currently leasing at an average 23.9% discount compared to direct lease space, per data from Colliers International. This is above historical discounts for sublease space.” 

 

Remarks about Subleases:

• Sublease rents are negotiable and their pricing strategy is variable. Some subleases are immediately advertised with a discounted rent. Alternatively, a sublease may be advertised with the rent currently paid by the Sub-landlord which sets the starting point for negotiations.
• Where sublease term lengths are shorter than desired, it is often possible to obtain a separate direct lease with the building owner for additional years which are typically at a higher rental rate.

 

A partial list of sublease offices follows.  Call for updated information: (212) 509-4049.

Partial Floor: 7,000 – 19,437 RSF
Full Floor: 37,867 RSF

Panoramic views complemented by a multi-million dollar high-tech turn-key installation. Floor plans and details on request. Asking rent is $40.00.

 

 

14,394 RSF
Thru 4/2022
Asking $48.00

 

 

 

 

 

 

 

3,345 RSF
Thru 6/22
Call for Rent

 

 

 

 

 

 

 

6,858 RSF
Thru 4/2025
Asking $77.00

 

 

 

 

 

 

 

 

5,013 RSF
Thru 9/2027
Asking $57.00

 

 

 

 

 

 

 

5,755 RSF
Thru 4/2024
Asking $56.00

 

 

 

 

 

 

 

 

19,517 RSF
Thru 11/2027
Asking $54.00

 

 

 

 

 

 

 

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.

#Penn1OfficeSublease

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Office Sublease Listings in Manhattan Q4 2020

Turn-key sublease offices are now plentiful in all sizes, designs, locations, pricing and term lengths.

Office Sublease Listings in Manhattan Q4 2020 is a curated report on high quality (Class A) short-term spaces available for immediate occupancy. Substantially lower priced subleases in Class B and C office can be obtained by contacting Cogent Realty Advisors at (212) 509-4049.

Key Takeaways:

•The continuation of the Covid-19 pandemic is reshaping the NYC office market. As of this date less than 15% of the work force has returned to their office.  Click the link for a November 12, 2020 report from CRAIN’S New York Business.

• As a result, the volume of Subleases offered for rent is increasing dramatically as companies of all sizes and from all industries look to dispose of unused office space and reduce liabilities.

•Subleases typically have a discounted rent and often include furniture and an IT network.

•As a rule of thumb, shorter term Subleases are more heavily discounted.

Link for information about SUBLEASE RISKS AND REWARDS.

 

Downtown Office Sublease Listings

55 Broadway
3,250 RSF
Thru 5/30/26
Asking $52

40 Fulton Street
5,663 RSF
Thru 8/2023
Asking $49

One World Trade Center
6,475 RSF
Thru 6/2024
Asking $72

 

 

 

 

 

 

 

 

Midtown South Office Sublease Listings

192 Lexington Avenue
2,976 RSF
Asks $45 PSF
1- 10 Years

915 Broadway
4,182 RSF
Asks $70
Term 2/2023

165 Mercer Street 4,897 RSF                  Asks $73                    Term 4/2024

 

 

 

 

 

 

 

 

Sublease Listings in Midtown 

111 West 33rd Street
2,932 RSF
Asks $45
Term 10/2026

 

620 Eighth Avenue
5,375 RSF
Asks $62
Term 2/2026

 

Penn 1                                    6,858 RSF                                  Asks $77                               Term 4/2025

 

 

 

 

 

 

 

1325 Sixth Avenue           3,290 RSF                      Asks $64                       Term 7/2023

747 Third Avenue
3,895 RSF
Asks $63
Term 9/2024

100 Park Avenue
5,385 RSF
Asks $72
Term 6/2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

#OfficeSubleaseQ42020

 

 

 

 

 

 

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Wall Street Office from $39.00 SF

Wall Street Offices from $39.00 SF 

Wall Street Offices from $39.00 SF are ready for immediate lease at 14 Wall Street. In response to steep decline in new leasing activity due to the Covid 19 pandemic, the owner of 14 Wall Street has reduced pricing to attract Tenants. The $39.00 per square foot base rent is limited to specific pre-built office spaces.

 

 

 

About 14 Wall Street

Entrance is opposite NYSE

• Class A office building (1912), NYC Landmark

• Extensively renovated and modernized

• 1,049,292 square feet, 37 floors and 32 elevators

• 24/7/365 access and attended lobby

• Full service includes HVAC and office cleaning

• Multiple telephone and high-speed internet providers

• Diverse Tenant mix includes  Amerigroup, Barclays, F.J. Sciame, NYU Medical Center, Skidmore, Owings + Merrill and The Street.

•  Within 2 blocks of the 1, 2, 3, 4, 5, A, C, E, J, M, R, W & Z subway and a short walk to the PATH and Staten Island Ferry

 

Elegant renovated lobby

• Leases signed in this building may qualify for the Lower Manhattan Commercial Revitalization Plan which gives Tenants a $10.00 per square foot rent credit amortized over a 5 year term.

 

 

 

 

Sample Wall Street Offices from $39.00 Square Foot

For a limited time pre-built offices ranging in size from 1,848 to 5,820 square feet and priced from $39.00 PSF are available. Most of these units are found on the lower floors of the building. For example, the 5,432 RSF office below features a reception area with adjacent conference room, a corner CEO office plus 6 standard windowed offices, area for workstations and a wet pantry. It is designed for a law firm, sales company or sales-oriented business. This unit overlooks Wall Street, Nassau Street and Federal Hall.

5,423 RSF Pre-built Office

 

 

 

 

 

 

 

14 Wall Street has a broad selection of offices for rent on its tower floors. Some of these units are existing high-end installations and others are “raw space” that the Landlord will custom-build to your specifications. Pricing ranges from $45.00 to $53.00 PSF.

 

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.

#WallStreetOfficesFrom$39

 

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Law Office Sublease at City Hall

225 Broadway in Lower Manhattan

A Law Office Sublease at City Hall is now available at 225 BROADWAY at the corner of Barclay Street. This centrally located professional building is just steps from the courts and numerous city, state and federal offices. It is accessible to many subway and bus lines.

There are a limited number of furnished MOVE IN READY PRIVATE LAW OFFICES FOR RENT with immediate occupancy. Other professional service companies are also welcome! A flexible lease term of 1 or 2 years is available.

Our client is an international law firm with a custom built headquarters on a private tower floor which offers panoramic views of Lower Manhattan.

 

 

 

 

 

 

 

Here’s What’s Included in Your Law Office Sublease: 

Entrance

• Reception area and guest services
• Conference room and panty use
• Furnished glass fronted office
• High-speed internet connection
• Central HVAC
• Nightly office cleaning

 

 

 

 

 

Conference Room

 

 

 

 

 

 

 

 

 

Private Office

 

 

 

 

 

Park View

 

 Law Office Sublease Floor Plan and Pricing 

 Office Sublease Floor Plan

 

Office Sublease Pricing

 

225 Broadway is Primarily Occupied by Law Offices

Photo courtesy of Costar

• Located at the corner of Barclay Street, near courts and municipal buildings
• Steps from 2, 3, 4, 5, 6, A, C, R, W subways and buses
• Class B Art Deco styled office building
• 520,951 square feet on 44 floors
•  14 new high-speed passenger elevators
• 24/7/365 access with a concierge attended lobby
• Central HVAC
• Multiple telecom/internet providers
• Amenities include onsite restaurant and printing service

 

 

 

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.

#LawOfficeSublease

 

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Manhattan Office Rental Market, Fall 2020

Manhattan Office Rental Market, Fall 2020 remains in limbo. The volume of leases being executed for new offices is at its lowest point since 9/11.  There is deep uncertainty about whether employees can return to work safely- even after modifications are made to transportation systems, building common areas and private work spaces. Alternatively, the long-term viability of the Work From Home (WFH) strategy remains unknown.

 

 

 

 

 

Costar’s Analysis of the Manhattan Office Rental Market

CoStar is the world leader in commercial real estate information and has the most comprehensive database of real estate data throughout the US, Canada, UK, France, Germany and Spain.

 

Key Costar Manhattan Office Indicators:

• Vacancy Rate: 9.4%
• Market Rent: $58.26*  (The rental income that a property would most probably command in the open market.  This is the weighted average across all Manhattan office buildings.)
• Deliveries: 2,165,804 SF
• Under Construction: 23,408,262 SF

     “Stay-at-home orders issued in March followed by a cautious approach to reopening in June have largely dampened a New York City market that was fresh off two consecutive years of record leasing activity. The pandemic has caused building tours to be canceled, negotiations to be halted, and the postponement of meetings as the face-to-face nature of commercial real estate was ill-equipped to immediately handle social distancing measures.”

    “The pandemic is likely to be an accelerant of existing trends rather than a 180-degree change agent. The leasing demand for new, modernized office space has driven the market’s fundamentals over the past decade, and will likely continue as tenants who are still willing to spend the capital on relocating will pursue notably improved spaces. Short-term renewals, with a term of three to five years, will likely be the preferred option for many tenants with landlords happy to avoid the possibility of a future large vacancy during a time of weakened demand. Leasing activity has already sharply declined in 20Q2 as owners adjusted to instituting more technology in their workflow and large corporations handled the pandemic across their global office portfolio. Fundamentals will be affected further if a sharp increase in sublet space were to hit the market due to companies making the difficult decision to ditch their office space altogether by choosing financial survival over in-person collaboration.”

 

Back-of-the-Envelope Projections

The CRE Brokerage community is projecting Effective Rents* may be reduced 15%-20% from the peak recorded in 2019. This is consistent with the rent adjustments that occurred after 9/11. Notwithstanding, offices buildings that have a minimal amount of vacant units and a stable Tenant roster with long term lease commitments are unlikely to offer significant discounts on their rent.

*Effective Rents: The average rent paid over the term by a tenant adjusted downward for concessions paid for by the landlord (such as free rent, moving expenses, or other allowances), and upward for costs that are the responsibility of the tenant (such as operating expense pass throughs).

Office occupiers that are flexible in regards to their lease term and space design will secure the deepest rental discount with a Sublease.  Refer to our recent report Sublease Risk & Rewards in 2020.

Manhattan Office Rentals in the News

 

 

 

Are office landlords turning a corner or rolling over? With Facebook and other large companies growing their footprints while #WFH remains a dominant trend, the terms of office leasing in big cities are changing fast

Got space? Manhattan office availability hits 7-year high  Leasing down 21% in August as sublet space dilutes market

Teleworking Could Turn Two Million Renter Households in Home Owners With nearly half of Americans theoretically able to telecommute, Zillow found that almost 2 million American renters living in pricey metro regions could afford starter homes in less expensive parts of the country.

Subleasing, Rent Pressures Spell Trouble for the Office Sector It may take several quarters, and multiple phases of reopening, before firms can fully assess their space needs, Colliers says in a new report.

SL Green opens One Vanderbilt as leaders urge return to office Tenants to move into new Midtown tower later this year

New York City offices are on the comeback trail “I reopened our offices on Sept. 14 for our people to come back on a voluntary basis,”

Remote Work’s Appeal Shows Signs of Fading  A study from workplace strategy consulting firm Vocon found that work-from-home fatigue is increasing and productivity is decreasing.

This landlord is calling on his tenants to come back to the city  RXR Realty, run by Chief Executive Scott Rechler, owns more than 25 million square feet of office space in the city, but most of it sits empty now, thanks to the pandemic.

 

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.

#ManhattanOfficeRental

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Pandemic Office Rental in New York City, New Leases & Strategies

Pandemic Office Rental in New York City

Thermal imaging scans are now required to enter some office buildings.

Reduced elevator capacity will result in longer commuting times.

Pandemic Office Rental New York City. The office rental market came to a screeching halt during the early days of the pandemic. Transaction volume plummeted to levels not seen in more than a decade, a reminder of the cyclical nature of the industry and its vulnerability to black swan events. Notwithstanding, there have been positive indicators including some large new lease signings.

As disclosed in our blog New York City Office Rental Report July 2020 LINK HERE,  “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. (4) Increased flexibility in lease terms, especially duration.

 

Large New Office Leases Signed during the Pandemic

421 Eighth Avenue aka James A. Building Post Office Building. 730,000 square feet. New lease. Facebook has now leased 2.2M of new office space in NYC in less than a year.

 

NBCUniversal: 1221 Sixth Avenue. 340,000 square feet. Renewal.

BNP Paribus: 787 Seventh Avenue, 323,000 square feet. Renewal and reduction.

Securities and Exchange Commission: 100 Pearl Street. 241,000 square feet. Relocation.

One Five One aka 151 West 42nd Street. 232,000 square feet. New lease.

 

 

AIG: 28 Liberty Street. 217,000 square feet. Relocation.

Allen & Overy: 1221 Sixth Avenue, 143,000 square feet. Renewal.

BNY Mellon: 200 Park Avenue. 130,000 square feet. Renewal.

Mitsubishi International:  655 Third Avenue. 120,000 square feet. Renewal.

32 Old Slip. 86,000 square feet. Relocation.

 

 

Read About the Office of the Future

How the Pandemic Has Impacted Commercial Real Estate: Mary Ann Tighe, CBRE New York Tri-State Region chief executive officer, discusses the state of commercial real estate in New York since the coronavirus pandemic. She speaks with Bloomberg’s David Westin on “Bloomberg: Balance of Power.” (Source: Bloomberg) Video Link Here.

 

Office Landlords Hire Hygienists, Scientists and ‘Ambassadors’ to Try to Check COVID-19 at the Door: Reopening Puts Workplace Habits, Office Staff Under the Microscope Link Here.

 

Return to office will be much slower than expected, survey says. Link Here.

 

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.

#PandemicOfficeRental

 

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