2017-04-19 — nypost.com
The final deal provided for a temporary space that was a brand new, and larger, prebuilt on a higher floor at half its asking rent that was "cheaper than Regus," along with five months of free rent from the day the tenant moves into its main digs -- a month per year of the lease -- and a final rent that was $7 per square foot lower than the initial offer.
[Building] brokers are being aggressive to win every deal because today's tenants -- no matter their size -- are simply taking less space to do their business. Even if they are expanding, they are taking less than they would have in the past.
... There is also a growing amount of space available at both redeveloped buildings and buildings new to the market -- which is increasing the competition.
SL Green Realty has calculated that 24 million square feet are coming to market, albeit some won't be ready for more than five years. Since buildings are off the market while under construction or undergoing upgrades, the actual increase to the market will be about 2.6 million square feet per year.
But even if the tenants lease 250 square feet per person -- and most now lease less -- SLG thinks it will take 10,400 new jobs just to stay even with vacancy.''
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