Ruth in Bloomberg News / Excellent summary on the state of the NYC office market
Below is a link to an excellent article in Bloomberg News that ran on Friday regarding the glut of office space available in Manhattan. The article confirmed much of what we have said about the state of the market. I was quoted in the article as follows:
“The sublet spaces currently on offer at deeply discounted rates is a veritable flood of biblical proportions, with more likely to come online soon.”
The article made several other key points, including the following:
• There has been a 36% increase in sublet space in Midtown and an 80% surge in sublet space in the downtown financial district.
• Average asking rents in lower Manhattan fell to $61.59 per square foot in February. Further, the asking rents for sublets are frequently lower, ranging from $30-$60 a foot.
• The increase in sublet space is fueled by companies such as JP Morgan Chase, Uber, Condé Nast, S & P Global and Fitch Ratings. In my view, some of the sublets on offer are not driven by financial distress. Rather, these sublets are based upon anticipated reduced office need due to the rise of remote work.
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