NYC’s Best Sublet Deals October 2024
“The brain is a wonderful organ; it starts working the moment you get up in the morning and it does not stop until you get into the office.”
Robert Frost
In the wake of the Amazon back to work executive order, the office wars are starting to heat up again. The word on the street is that employers are starting to claw back some of the ground they have lost over the last four years. However, employees are fighting tooth and nail keep what many now view as their quasi-Constitutional right to work from home where some contend their brains work better.
Nevertheless, one industry veteran tells us that many businesses are now requiring Tuesday, Wednesday and Thursday in the office. While Friday at home has become somewhat sacrosanct, Monday may be the next battlefield coming to an office near you.
According to KPMG, 82% of CEOs think that we will be back to full-time in the office by 2027. Of course, that is their preference which is not shared by the line workforce, which does not nearly mind the work as much as the commuting according to a survey. One interesting approach we heard at the Counselors of Real Estate conference was to require all employees who have less than a certain amount of experience to come in because they need the training that they receive in the office. I like that approach because CEO’s know that training is not the same when it is done remotely, which is why most managers want their staff back in the office.
On the other hand, I also recently met a top Amazon employee who enjoys working from home and if the company is unwilling to make any exceptions, his potential departure could be another company’s gain. Accordingly, the bottom line is that as I have long said, no one size fits all. For many companies, a bespoke approach to the office may be the best.
In other news, the 50 percent interest rate by the Federal Reserve was warmly welcomed by the commercial real estate industry. Indeed, for office landlords it was almost like a drink of water to a person whose throat was parched from thirst in the middle of the desert. Unfortunately, it will take more than a half a point to be significantly improve the situation as commercial mortgage loans are very closely tied to the 10-year Treasury note which watchful observers may have noticed has actually had a slight increase in its yield following the Fed’s September 18 announcement. As commercial mortgage interest rates are generally fixed and not short-term floating rates, it will take several more cuts to undo the damage that has been done which came at the most inopportune time when long-term structural changes to office use were taking root.
But with all the major political, geopolitical and economic developments roiling, some things remain constant. For office tenants, great values are the order of the day. As the baseball playoffs get under way with both the comeback Mets and front-running Yankees in the mix, your company can also be striving and thriving with championship caliber bargains to celebrate along with a potential Subway Series.
Below is a listing of the best deals currently available on NYC. Please feel free to tap the expertise of Wharton Property Advisors If you are looking for office space, seeking to dispose of excess space, want to renegotiate your lease or just have questions. We always represent our clients with integrity, creativity, independence, and diligence.