While the market is slow to return, there are signs of life happening. We recently have had a lease go out, and got an offer on a property we are representing today! As well as another showing. There are turbulent headwinds, but the market in general is not completely dead. Just on life support. There is a long way to go to get back to some normalcy, but we feel confident that will happen as people in NYC continue to mask up, stay socially distant.
No question the market has slowed significantly with the advent of Covid19 since spring, but some industries are finding that working remotely doesn’t work too well. These are companies that need the one-on-one collaboration. For others, there is a need for a more secure environment as they deal with sensitive issues for their clients. For others, the fact that leasing space is designed for a true work environment makes working in that extra bedroom at home replete with all the family interruptions, not the ideal option.
For Manhattan there are true signs of new deals in the works and that is especially true in the sub lease market which is making up a large portion of leasing in the past 90 to 120 days. And driving that activity are lower rental rates and more flexibility in inventory. Tenants who formerly could not find suitable space are finding that they can not only find the perfect spot, but do so at much lower costs and with extra perks sealing the deal with longer lease terms, reduced construction costs and even the inclusion of furnishings.
As with all crisis’s; some fair worse, others fair better. Warehouse and Industrial properties have been stable and have had bump up in activity as demand has increased for storage and logistics.
New York City has seen times like these in the past, most notably post 2009. Given the robust financial and the multi-month bull stock market, it bodes well for a recovery in the months ahead. Stay the course and keep plugging.
For your leasing needs, contact us at JBA. 212-366-0364.