We hope everyone had an enjoyable Fourth of July weekend. Now that we are several weeks into the opening of offices in NYC and Phase III has started, we thought you would find the recent Real Estate Weekly article discussing the effects of COVID – 19 on the NYC real estate market of interest. A link to the article is below. I am quoted extensively, and my comments regarding the glut of sublet space coming onto that market follow for your convenience.
“Ruth Colp-Haber, a veteran of the sublease sector and President and CEO at Wharton Property Advisors, also paints a bleak forecast.
Members of the industry should prepare for an unprecedented flood of sublet space of Biblical proportions in quantity at significant price reductions, said Haber.
The situation will develop over the coming months, throughout the summer as companies return to their offices and assess their space needs.
Unlike major NYC landlords, these tenants turned sublandlords will be looking to slash overhead by disposing of space at whatever price they can get. Their goals are short term, unlike the major NYC real estate firms. Accordingly, they are not concerned about long term rental rates and brand preservation. These new sublandlords need cash and need it quickly.”
Please let us know if we can be of assistance with your company’s real estate situation. As always, we welcome your thoughts as well.