Office Space News
Corporate Suites Opens New Project in Midtown Manhattan
Published March 6th, 2009 by Jennifer LeClaire
Manhattan’s office market is in shambles. In fact, calling it a renter’s market is an understatement. Firms are renegotiating 18 months renewals on 10- to 15-year leases and some tenants are paying as little as 50 cents on the dollar.
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Nonetheless, a New York City- serviced office company betting Midtown needs one more location where companies can seek relief from long-term, high-dollar leases. Corporate Suites opened a 23,000-square-foot business center at 757 Third Avenue at 47th street on the 20th and 21st floors. The company predicts pent up demand will drive tenants towards its newest project.
“The new center is well situated in a Class A Midtown East office building and features high-tech meeting rooms and elegant décor,” says Hayim A. Grant, president of Corporate Suites Business Centers, a turnkey office space company headquartered in New York City. “We are offering great rates with flexible terms.”
Manhattan’s Office Woes
How bad is the office market in the area Grant is venturing into? To put things into perspective, Manhattan’s rents dipped 4.4 percent from the third quarter to the fourth quarter of 2008, according to Studley, a national tenant rep firm. But the decline was more severe in Midtown at 8.3 percent. This is the worst office market in New York City since the aftermath of September 11, 2001.
That doesn’t seem to faze serviced office suite companies – and some are reporting growth rather than constriction. Corporate Suites is one of those companies. Grant says his company saw demand for temporary office space increase in January. To be sure, companies like Corporate Suites are poised to benefit from tenants who are too nervous to sign even an 18-month extension on a lease, much less enter into a long-term commitment in an uncertain market.
Although commercial lease and sublease office space inventory in Manhattan is available at deep discounts, many businesses cannot secure the capital or market confidence to commit to long-term leases, leading them to look for short-term, flexible options like Corporate Suites, Grant says.
A Serviced Office Bailout?
Corporate Suites newest Midtown Manhattan location features 67 offices with views of the New York, including four conference rooms with panoramic views of Midtown Manhattan. Grant’s timing with the new serviced office facility is certainly strategic, with market needs changing month by month and likely to continue transitioning toward short-term, low-commitment office space.
In addition to temp space demands, Grant also expects as an increase in demand for startup space due to government economic stimulus. For example, New York City Mayor Michael Bloomberg recently announced a $30 million angel fund in effort to boost the financial services sector. Other prominent venture capitalists have signaled they have large cash reserves and are beginning to make market investments. Grant expects these developments to stimulate startup activity.
“We are hopeful that with the many announcements pertaining to stimulus for start-up firms, particularly in the financial sector, these firms will have immediate needs for professional office space and will expand rapidly,” Grant says. “With seven central Midtown and Downtown Manhattan business centers, we are well positioned to provide any business with affordable furnished office space on a short- or long-term basis.”
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Elizabeth Sanchez March 6th, 2009 at 1:31 pm
This is a bold move, but it’s a bold move by a proven player in the serviced office sector. Grant clearly sees opportunity amid chaos, and his reputation in the Manhattan market is strong. I expect Corporate Suites will do well for the reasons he’s outlined — and because he’s got a quality product. Congratulations!
Bill Brookshire March 6th, 2009 at 1:50 pm
High-tech meeting rooms and elegant decor. Those are two attractive aspects of a serviced office facility. There are lots of serviced offices in Midtown, though. It looks like flexibility is the key point here. Flexible office spaces are the only way many companies will rent, I imagine, in that market. It’s one of the worst in the nation.
Maggie Correta March 9th, 2009 at 5:21 am
Corporate Suites is a strong brand in Manhattan. This company focuses on providing clients with top quality facilities and locations. You can’t beat this serviced office provider’s value in today’s economy. Even with the low-cost leases available in New York, companies looking for immediate value will look to office space from companies like Corporate Suites.
Elizabeth Sanchez March 9th, 2009 at 1:37 pm
Seems like a lot of folks are betting on the stimulus money. I am not sure how that will pan out, but if folks do start more businesses I have little doubt serviced offices will come to the “rescue.” With so much attention on the industry these days, the secret is out.
Corporate Suites in The News « New York City Office Space Views March 10th, 2009 at 12:15 pm
[...] We were also featured in an article in The Real Deal which you can read here as well as aBetterOffice which you can read here. [...]
Corporate Suites Business Centers Hits Inc. 500 List August 24th, 2009 at 8:37 am
[...] Suites, which earlier this year opened up a brand new business center at 757 Third Avenue at 47th Street, hopes to continue its growth and [...]
Jon Fink September 1st, 2009 at 2:42 pm
There are so many options in NYC that it seems to me the premium that Corporate Suites and their competitors charge is not worth it.
For example, I sublease in a small turn-key office that I found on Craigs List that caters to the same people that Corporate Suites does but on a small scale in the Wall Street, NY area. I’m not nickel and dimed, I have a nice private office, and people who care about each and every one of the subtenants because each and every one of us is important, not just a drop in their corporate bucket. If you’re looking for space in the Financial District of NYC, check them out, you will find them a lot more economical and attentive to your needs.
Here’s a recent ad that they posted: https://post.craigslist.org/manage/1352915005/y76sk