Manhattan’s ‘Commodity’ Office Space Might Be on the Mend

Manhattan’s ‘Commodity’ Office Space Might Be on the Mend

There is a revival of leasing activity in the more “commoditized” space, not just the Class A trophy space that heretofore has been the hallmark of the post-pandemic semi-recovery — one that has had owners of Class B and C buildings worried that a comeback at their level might never happen, meaning they will have to consider converting their buildings to another property type, like residential.

Read More

Gaming platform joins RAL’s Union Square property

Gaming Platform Joins RAL’s Union Square Property

A Dick’s Sporting Goods subsidiary inked a deal with RAL Development to join its Union Square boutique office building.

GameChanger, a youth sports platform for live streaming, signed a 25,000-square-foot lease at Zero Irving, the New York Post reported. The company will occupy the 17th and 18th floors of the technology-focused property at 124 East 14th Street.

Read More

Here’s a look at the largest office projects coming to Manhattan

Here’s a Look at the Largest Office Projects Coming to Manhattan

Stalled office occupancy, sluggish leasing activity, high construction costs, and rising interest rates have the pace of office construction well below pre-pandemic levels. Still, these developers are banking on future demand for premium space. Much of the strategy, like so much else in real estate, comes down to a well-worn adage: location, location, location.

The largest office projects proposed over the last 12 months are concentrated around major transportation hubs in Midtown, including three that will be a short walk from Grand Central Terminal.

Read More

KKR dumps Manhattan office plans

KKR Dumps Manhattan Office Plans

KKR is the latest firm to bail on office plans as the sector continues to be shaped by remote work.

The private equity giant was looking at 300,000 square feet at Tishman Speyer’s 341 Ninth Avenue in West Chelsea Insider reported. The firm was considering the space near its Hudson Yards headquarters for possible consolidation of its other Manhattan office spaces but has since scrapped its plans.

Read More

Top Office Developers Hit the Pause Button on New Projects

Top Office Developers Hit the Pause Button on New Projects

U.S. real-estate developers are delaying major office projects already underway or in the planning stages, discouraged by high vacancy rates and the reduction in workspace demand resulting from remote work.

Some property developers view periods of economic uncertainty and weak office demand as good times to launch new projects. Because large-scale developments tend to take three to five years or longer, developers bet that tenants looking to trade up in office quality will be drawn to modern offices with lots of amenities, just as the economy is gaining steam.

Read More