How Office Renters Can Take Advantage of a Depressed Market

By Mitch Waldman

Office Renters

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How Office Renters Can Take Advantage of a Depressed Market:

1) Renegotiate your Lease to take into account  current market conditions.

2) Renew and extend your Lease at a discounted rent.

3) Relocate and receive new Lease incentives including discounted rent, a rent abatement (free rent) and a better quality work space.

•Office renters can take maximum advantage of a depressed market by utilizing an experienced Tenant Representative Broker like Cogent Realty Advisors to negotiate on their behalf. Cogent is a NO FEE Broker. Phone (212) 509-4049.

• Building owners respond seriously to Tenants who are represented by Cogent Realty, because we  understand the business and work hard negotiating the best lease for you.

• Taking advantage of this strategy will result in lower rent, an upgraded work environment, and time saved.

 

Office Property Owners are Struggling

Large and small, both public and private office property owners are struggling to fill vacancies as a result of a shift to hybrid work.

 

Office Renters

BXP CEO Owen Thomas: Commercial Real Estate Is ‘Currently In A Recession’

SL Green, NYC’s Biggest Office Owner, Reports Deepening Losses, Dropping Rents

 

 

Essential Information & Strategies for Office Renters in 2023

  1. Office Tenants continue to have an advantage when negotiating new leases and lease renewals.
  2. There is fierce competition among building owners to secure new business and retain existing Tenants.
  3. Successful companies are leasing high quality office space in amenity-rich buildings at favorable terms.
  4. Class A and “in demand” properties are competing by offering Tenant Incentives including rent concessions (the free rent period) and cash contributions used for the construction of new offices.
  5. Lower quality “commodity” properties are offering rent discounts.
  6. To motivate leasing, Landlords are using different strategies:
  • Upgrading building public areas and applying Covid-19 health protocols.
  • Pre-building modern move-in ready office suites.
  • Offering flexible leases with shorter terms.
  • Delivering office space fully furnished with an internet connection.
  • Installing popular amenities such as a conference center, quick service dining, and a fitness/wellness center.

 

Manhattan Office Leasing Statistics Year End 2022- Recap for Office Renters

CostarOffice Renters is the world leader in commercial real estate information and has the most comprehensive database of real estate data throughout the US, Canada, UK, France, Germany, and Spain. Costar Group Inc. includes well- known brands like Loopnet, Emporis, Apartments.com, Home.com and BizBuySell.

Key Costar Manhattan Office Building Indicators:

  • Asking Rent/SF: $55.61 ↓*  (*Weighted average across Manhattan office buildings.)
  • Vacancy Rate:  18.6% ↑
  • Inventory SF: 412 M ↑
  • Existing Buildings: 1,451 ↑

 

Finding the Perfect Office Space is a Big Decision 

  • Cogent Realty Advisors, Inc. is a licensed independent New York State commercial realtor founded by Mitchell Waldman in 2002.
  • As a tenant-representation company, Cogent Realty is focused solely on representing the interests of  business Tenants that rent office space.
  • Tenants pay no fee for using our service.
  • Cogent provides objective, unbiased expertise in finding office space and negotiating lease agreements. Our experience and knowledge in the New York market means that we can secure the best office space for you with favorable terms and pricing.
  • For help with your office real estate, contact Mitchell Waldman at (212) 509-4049.       

#OfficeRentersTakeAdvantage

 

 

 

Posted in New York City Office Market Reports