Real Estate Advisors Inc: April 2022

Monday, April 25, 2022

Empire State Building Office Space, Business Rental Guide for 2022

Empire State Building, Office Space for Business Rental Guide for 2022

Empire State Building office space is a fantastic choice for New York City businesses requiring these key features:

Photo courtesy of Costar, the world leader in commercial real estate information,

• Strong corporate credibility and prestige by locating at one of the world’s most famous buildings

• Modernized best-in-class business environment, Tenant amenities and technology

• Energy Star Certified and newly install MERV-13 air filtration

• Excellent value compared to alternative Class A buildings

• Large inventory of pre-built move in ready office suites

• Prestigious Tenant roster with well-known Fortune 500 companies including LinkedIn, Global Brands Group, Shutterstock and the FDIC.

• Professional ownership and management

• High density of nearby restaurants, hotels and services

The Empire State Building has a fascinating history. Click THE REAL DEAL magazine logo below for a video that begins with construction and follows the many changes in fortunes and ownership throughout the years. The Empire State Building is now the “anchor” asset for Empire State Realty Trust (ESRT), a publically traded company on the New York Stock Exchange.

LOCATION

The Empire State Building is located at 350 Fifth Avenue at the south west corner of 34th Street. This location is equidistant from both Penn Station and Grand Central Terminal. The #6 train is found on Park Avenue and 33rd Street and the N, R, Q, W, B, D and F at 34th Street and Broadway. Both Fifth Avenue and 34th Street have bus service.

Empire State Building architecture & Office Design

Soaring 1,454 feet over midtown Manhattan, the Empire State Building is a center core office building which means that the elevators, stairs and mechanical systems are in the middle of each floor. As a result there are windows on four sides providing excellent light and views in both open collaborative work environments and more traditional layouts with perimeter offices.

The Empire State Building offers intelligently designed fully constructed office suites that are ready for immediate occupancy. All suites feature interior finishes that exceed those found in most other Class A buildings. Included are high ceilings (finished or open), upgraded lighting fixtures, wood and glass fronted offices, and contemporary pantries outfitted with Energy Star- rated stainless steel appliances.

There is a large inventory of offices available for lease ranging from 2,800 rentable square feet (RSF) up to full tower floors of 26,000 RSF. A small sample of office suites is shown below. (Note: Furniture is not included.)

Pre-built Office. 3,112 RSF

Pre-built Office. 7,486 RSF

Pre-built Office. 8,316 RSF.

Pre-built Private Floor. 26,620 RSF.

Empire State Building Direct Leases

In 2021 the asking rents range from $65.00 per rentable square foot (PSF) on the lower floors up to $75.00 PSF on tower floors. A quick reference table is below. Note: After negotiation your contract rent will be lower.

empire state building

Additional office overhead costs include electricity, annual rent increases and annual real estate tax increases.

Sublease Office Rental Pricing

A Sublease can offer a discounted rent for pre-built office space, and frequently furniture, fixtures and office equipment is included. Here is a link to our blog Sublease Rewards and Sublease Risks.

The pandemic has resulted in a record quantity of Sublease listings at the Empire State Building. As of April 2022 there was 380,000 RSF of Sublease office space for rent ranging in size from small offices to contiguous floors. A sample is shown below. Contact Cogent Realty Advisors for current information: (212) 509-4049.

Pre-built Turn-key Suite. 11,553 RSF. Asking $45.

Your Corporate HQ at the Empire State Building

• Class A office Art Deco style office building constructed in 1931. In 2010 $550 million was spent on infrastructure renovations and energy efficiency.

• 2,800,118 SF total building area. 12,905 – 100,512 RSF floors. 102 stories tall and rising 1,454 feet.

• 24- hour, 7- day access. A total of four dedicated Tenant-only entrances on 33rd and 34th Street. Uniformed lobby concierge, uniformed security and turn-style access cards for Tenants.

• Visitor reception desk, card access controlled web-based visitor processing system.

• 73 passenger and six freight elevators

• Central HVAC provided Monday to Friday, 8:00 am- 6:00 pm. Overtime and supplemental AC available.

• Fully sprinklered building, emergency lighting and power.

• Telecom providers include AT&T, Broadview Networks, Cogent Communications, Covad, Earthlink Business, Level(3) Communications, MegaPath, Rainbow Broadband, Time Warner Cable, Time Warner Cable Business Class, Verizon, Verizon FiOS, XO Communications.

• Six nearby parking garages. Bicycle area.

• Owned and managed by ESRT, a publicly traded company.

• New York, NY 10118

The “Urban Campus” at The Empire State Building

The Empire State Building office spaces benefit from an “Urban Campus” designed for today’s work-life style.

Fitness Center: 15,000 square feet for Tenant-only.

Conference Center offering spectacular views and catering for Tenants only.

7 Dining Options at the Empire State Building

Executive Dining at the STATE Grill and Bar (called a “winner” by ZAGAT), for Tenants only.

AXON AMENITY CENTER coming in 2023 . It will feature a state of the art basketball court with pull-out bleachers that accommodate large town halls, a lounge, a bar, and the “ESRTEE Virtual Golf” golf simulator.

About Cogent Realty Advisors

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 leasing solutions for office Tenants seeking stability and value in uncertain times. For information phone Mitchell Waldman at (212) 509-4049.

#EmpireStateBuildingoffice

The post Empire State Building Office Space, Business Rental Guide for 2022 appeared first on Rent NY Office.

Monday, April 18, 2022

One World Trade Center Office Rental Guide 2022

Renting an office at One World Trade Center is a defining moment for a global business.

• A universally recognized symbol of prosperity, freedom and resilience

• An ultra-modern urban design with rich corporate amenities and best-in-class technology, efficiency and safety

• Excellent value for your rental dollars

• Direct in-building access to the new Fulton Street Station transportation complex and luxury shops at the Westfield World Trade Center. The architectural focal point of this underground city is the Oculus.

One World Trade Center Office Rental • High quality neighborhood restaurants, hotels and services. Link follows: Downtown Alliance.

• Professional on-site ownership and management

Tenant Community

One World Trade Center describes itself as “Home to New York City’s largest TAMI (technology, advertising, media information) tenant community”. However, all business categories are represented and the largest Tenant is Conde Nast publishing. Innovative companies that have recently leased offices at One World Trade Center are shown below.

Ultra-Modern Office Building

One World Trade Center is a center core office building which means that the elevators, stairs and mechanical systems are in the middle of each floor. As a result all spaces are column free and have spectacular light and views.

At One World Trade Center most work spaces are designed as wide-open collaborative work environments. However, tradition layouts with perimeter glass fronted offices and conference rooms are both efficient and impressive.

Three Different Leasing Programs are Offered:

One World Trade Center Office Rental #1: Pre-built move-in ready office space with elegant finishes.

#2: Unfinished/white box space that the Landlord will custom build to your design specifications.

#3: Unfinished/white box space that you can build on your own utilizing money (the “cash contribution”) and time (the “rent abatement”) provided by the Landlord.

One World Trade Center Office Rental in 2022

Shown below are sample offices. Unless specified otherwise, furniture is not included and is displayed for space planning purposes only. Offices measuring less than 5,000 rentable square feet are in high demand and rent very quickly. Contact Cogent Realty for current space availability and pricing: (212) 509-4049.

4,719 RSF. Pre-built Office.

5,329 RSF. Pre-built Office.

7,945 RSF. Pre-built Office.

8,590 RSF. Pre-built Office.

9,499 RSF, Pre-built Move-In Ready Office. Includes furniture, wiring and lighting.

12,456 RSF. Pre-built Move-In Ready Office. Includes furniture, wiring and lighting. VIRTUAL TOUR.

11,033 RSF. Raw space. Landlord will build-to-suit.

40,144 RSF. Raw space. Suggested layout. Landlord will build-to-suit.

One World Trade Center Office Rental- Direct Leases

As a result of the impact of the pandemic on the office market, more flexible lease terms are being offered. Asking rents are from $73.00 to $85.00 per rentable square foot (PSF) depending on the floor and view.

For example, the 4,719 RSF office shown above has an asking rent of $73.00 per rentable square foot. $73.00 X 4,719 RSF = $344,487 per year or $28,707 per month. Cogent Realty has a solid track record negotiating lower rents and other leasing incentives for its clients. Additional office overhead costs include electricity, annual rent and real estate tax increases. Municipal Incentives may be available to reduce your occupancy cost.

Sublease Office Rental Pricing

A Sublease can offer a discounted rent for pre-built office space, and frequently furniture, fixtures and office equipment is included. Here is a link to our blog Sublease Rewards and Sublease Risks.

As of April 2022 there was 428,636 RSF of Sublease office space for rent at One World Trade Center. Most of this space is found on full floors of approximately 48,000 RSF leased by Conde Nast. Call for updates: (212) 509-4049.

Your Corporate HQ at One World Trade Center

Lobby

• Class A ultra-modern office building built in 2014

• 1,776 feet tall, the highest in the Western hemisphere

• 3,038,168 RSF total building area with 40,000 RSF floors and 104 floors

• 24- hour, 7- day access, uniformed lobby concierge, security monitoring and turn-style access cards for Tenants

• 71 fast passenger elevators and 12 escalators

• LEED Gold certification

• Owned and managed by Durst Corporation and the Port Authority of NY/NJ

• Alternate address: 285 Fulton Street, New York, NY 10007

Introducing One World Commons

Located on the 64th floor, One World Commons is a 25,000 square foot amenity space designed to attract, inspire and retain companies and their employees. This world-class social and business hub includes conference, meeting and event rooms, lounges, a game room and cafe.

ABOUT COGENT REALTY ADVISORS

Cogent Realty Advisors is an independent and licensed no fee Realtor with over 20 years of experience representing businesses that lease NYC office space. Our mission is to help you find the right office at the right price. For information, phone Mitchell Waldman at (212) 509-4049.

#oneworldtraderental2022

The post One World Trade Center Office Rental Guide 2022 appeared first on Rent NY Office.

Friday, April 8, 2022

NYC Office Leasing Report Q1 2022

NYC Office Leasing Report Q1 2022. With the waning of the Covid-19 pandemic many companies are encouraging their employees to return to the office. But NYC office occupancy still remains stubbornly low. According to Kastle Sytems, as of March 30th, NYC office occupancy was still only 36.9%.

A Partnership for New York City poll conducted between February 17- March 11, 2022, found that “concern about public safety, especially in the transit system, is the single biggest obstacle to mobilizing the return to work in the city’s office buildings.”

Furthermore, the work-from-home model is preferred by many employees and it has proven to be cost-effective and reasonably productive, although less so than working at an office. In keeping with this some corporations have now made full-time work-from-home or a hybrid schedule (both home and office), a part of their employment terms.

In what is considered to a blow to office landlords, JPMorgan Chase CEO Jamie Dimon acknowledged “It’s clear that working from home will become more permanent in American business.” JPMorgan Chase is the city’s largest commercial tenant. Read the full story here: Jamie Dimon to work-from-homers: You win

Costar’s Analysis of the NYC Office Market

Costar Group Inc. is NASDAQ: CSGP

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. Costar Group Inc. includes well- known brands like Loopnet, Emporis, Apartments.com, Home.com and BizBuySell.

Key Costar Manhattan Indicators:

Available Asking Rent/SF: $54.85* ↓
Vacancy Rate: 16.4% ↑
Vacant SF: 71.3 M ↑
Sublet SF: 22.5 M ↓
Inventory SF: 436 M
Existing Buildings: 1,620
Under Construction: 9.6 M

*Weighted average across all Manhattan office buildings.

Office Leasing Activity in NYC

Even though office usage remains about a third of pre-pandemic levels, office leasing activity has increased for five consecutive quarters from Q3 2020 through Q4 2021. Some large new leases have come from tech-oriented and financial service companies that can afford new offices that remain partially occupied. Much of the other leasing activity are renewals where Tenants received favorable terms to sign extensions.

One Madison, 328,000 SF.

100 Park Avenue, 236,036 SF

320 Park Avenue, 221,976 SF.

437 Madison Avenue, 159,594 SF.

Cogent Realty Advisors’ Analysis of the NYC Office Market

For the foreseeable future, office Tenants will have strong leverage when negotiating new leases and renewals.

There will be fierce competition among Property Owners to secure new business and retain existing Tenants.

New York City office buildings can be divided into two segments: Class A properties and “everything else”. Successful companies will take advantage of the current environment by leasing high quality office spaces in amenity-rich buildings at historically favorable terms.

Class A and “in demand” properties will compete primarily by offering enhanced Tenant Incentives. These include lengthy rent concessions (the free rent period) and large cash contributions used for the construction of new offices. Modest rent discounts can be expected.

Lower quality properties will compete by using hefty rent discounts.

Pragmatic Landlords recognize that the office market has been disrupted and new business strategies are needed to motivate leasing. They include: (1) Upgrading building public areas; (2) Applying Covid-19 related health protocols including enhanced ventilation, air filtration, touchless entry and frequent cleaning; (3) Pre-building modern move-in ready office suites; (4) Offering flexible leases with shorter terms and opt-out clauses; (5) Delivering office space fully furnished with an internet connection; (6) Installing popular building amenities such as a conference center, quick service dining, and a fitness/wellness center; and (7) Providing a co-working facility as a service to existing Tenants and to attract new business.

Office Tenants that are flexible with their lease term and space design can negotiate steep rent discounts with a Sublease. Read our recent report: Sublease Risk & Rewards.