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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The post Pandemic Office Rental in New York City, New Leases & Strategies appeared first on Rent NY Office.
1. Rent is usually below the current market value.
New York City Office Rental Report July 2020 is presented by Cogent Realty Advisors, Inc. 
The pandemic will result in a more favorable office market for Tenants that execute new leases and renewal leases.
The pandemic is having a profound effect on society, health and the economy of New York City. The long term impact on the NYC office rental market remains unknown in spite of countless predictions (often contradicting) from industry-related spokespersons including economists, building owners, brokers, architects, etc.
Office Space Price Guide for Buildings near Penn Station, 2020 provides useful information for any business that leases space.
450 SEVENTH AVENUE is located at the north west corner of 34th Street, about 100 feet from the entrance to Penn Station. It contains 520,000 RSF of Class B office space spread over 46 floors. It is well maintained and owner-occupied. 450 Seventh Avenue just completed renovations of its lobby, elevators, corridors and bathrooms. The building is primarily occupied by small- and mid-size firms including law, accounting, insurance and technology. The current vacancy rate is 3.3% and asking rents cost from $58.00- $62.00 PSF. The Landlord is able to custom-build your office quickly.
463 SEVENTH AVENUE is located at the north west corner of 35th Street, across from Macys. True to its fashion roots, this high quality building is home to a significant number of apparel companies. Other Tenants include offices for New York Presbyterian Hospital, management consulting and real estate investment. The building provides 24/7 access, a new lobby with uniform concierge, destination dispatch elevators, Tenant-controlled air conditioning, renovated corridors and rest rooms. Asking rents are priced from $49.00 to $55.00 PSF. On lease terms of five or more years the Landlord will custom build your office.
7 PENN PLAZA aka 370 Seventh Avenue, is a pristine owner-occupied and managed office building spanning the entire block front from 31st to 30th Street. This 18 floor building features windows on four sides, 24/7 access, a handsomely renovated concierge attended lobby and central HVAC. It is popular with small and mid-size firms such as legal services, accounting, architecture/engineering, software and financial advisors. Stores at the base of the building include Starbucks, the Juice Shop, Sweetgreen and coming soon- Sticky’s Finger Joint. Contemporary turn-key offices and build-to-suit spaces are available with asking rents from $70.00 PSF.
225 WEST 34TH STREET aka 14 Penn Plaza is located mid-way between Seventh and Eighth Avenue. This large Art Deco style building (1925) has an architecturally restored lobby coupled with modern building systems. Amenities include 24/7 access and an attended lobby, Tenant-controlled air conditioning, office cleaning and a choice of seven high-speed telecom providers. Currently it is 96% rented. Vacant spaces ranging in size from 996 to 8,430 RSF are now available for the lease. The cost of asking rents starts at $65.00 PSF.
505 EIGHTH AVENUE is located at the north west corner of 35th Street. This boutique loft building has 11,000 RSF floors which in some instances have been heavily divided for a diverse group of Tenants occupying offices as small as 500 RSF. Amenities include 24/7 access, an attended lobby during business hours and Tenant-controlled AC. Asking rents cost $48.00 PSF and the Landlord will build-to-suit.
237 WEST 35TH STREET is located between Seventh and Eighth Avenue and representative of many of the areas’ loft buildings. Previously rented to garment manufacturing operations, they are now occupied by service professionals (such as law, accounting and architecture) and TAMI (technology, advertising, media and internet) firms. Lower cost rent and an edgy environment are their biggest attraction. To varying degrees the lobby and infrastructure of these buildings has been renovated for “office users”. The office interiors typically have concrete floors, high open ceilings, large windows and quite often, window air conditioning units. At 237 West 35th Street asking rents are $40.00- $44.00 PSF. Additional loft charges include water, sprinkler and rubbish removal.