Tech Office Leasing Plummeted in Fourth Quarter
Big tech once appeared to be a savior in the office market. A year later, it’s more of a harbinger of doom.
Leasing by tech companies fell drastically in the fourth quarter, down 57 percent across the country from the previous quarter, according to Savills data reported by Bisnow. The report noted that the 2.2 million square feet leased in the fourth quarter was barely a quarter of the 8.5 million taken a year earlier.
Hedge Fund Two Sigma Keeping 265K-SF 100 Avenue of the Americas Offices
Two Sigma signed a renewal to keep its 265,000-square-foot offices at 100 Avenue of the Americas for another seven years, according to a source with knowledge of the deal. Asking rent was in the mid-$80s per square foot.
Office Owners Already Reeling From Remote Work Now Face Recession Risk in 2023
Owners of office buildings stumbled through 2022 when their holdings underperformed most every other type of commercial real estate. Things look poised to get worse in 2023.
Landlords have been longing for employees to head back to office buildings in greater numbers. But the national return rate has crept up slowly. For the past three months, it has plateaued at about half of what it was before the pandemic.
Now, a possible recession is making the outlook for 2023 even gloomier. New business searches for new office space, after rebounding in 2021, fell in 2022 to 44% of what they were in 2018 and 2019, according to VTS, a firm that operates a data platform that tracks tenant demand.
How ChatGPT Could Change Commercial Real Estate
Brokers are turning to the bot developed by artificial intelligence firm OpenAI to assist with everyday tasks. The free technology produces conversational answers to inquiries rather than responding to questions and scraping the internet for search results.
Gparency’s Ira Zlotowitz says that the bot will ultimately close the knowledge gap among brokers and further emphasize the importance of personal connections.