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.
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