Comments on: Office space in Midtown Manhattan

By: Bill Brookshire

Bill Brookshire — Tue, 25 Nov 2008 16:11:17 +0000

Could it be that as New York goes, so goes the rest of the executive office suites market? Maybe to some extent, but like everything else, there are surely pockets in the serviced office industry that defy the standard. It’s often the truth, as well, that the first to see the effects of the down cycle are also first to recover. In any case, it’s interesting to keep an eye on Midtown Manhattan’s office rental market.

By: Marcus Hester

Marcus Hester — Wed, 19 Nov 2008 20:01:34 +0000

Mike – I imagine that’s the sentiment of the entire office industry, whether it’s executive offices or traditional office leases. When I talk to developers in big cities, they tell me that they are looking for a large number of smaller tenants rather than a handful of large tenants so they can spread the risk. It seems the serviced office industry is already living by that mantra and may do better through the economic storm because of it.

By: Mike

Mike — Wed, 19 Nov 2008 12:08:36 +0000

After having spoken with several executive office suite providers in New York, they all said the same thing: executive offices in New York are slowing but most are still relatively full. One said that since there are so many companies needing different types of space, they are still seeing some new activity. But the real point is that it’s a slow degradation of the market and they’re definitely not on the upswing or holding steady. They would like to see things turn around, or level off soon.

By: Maggie Correta

Maggie Correta — Wed, 19 Nov 2008 11:37:50 +0000

The market is going through a bit of a shakeout in some cities. Too much office space was developed too quickly, and now it’s sitting dark. I can’t see that as a benefit for serviced offices because, like Rob said, folks might look for bargain basement deals on leases instead of turning to executive offices. That’s where the quality executives suites win out. It’s the amenities that you don’t get with a traditional office rental that will make a difference.

By: Rob Zeus

Rob Zeus — Tue, 18 Nov 2008 15:47:20 +0000

I was up in Manhattan in April… my how things have changed. I hate to see the bleeding, especially in one of the prime markets in the nation. That’s a bad sign. We have to keep in mind, though, that there were a lot of major companies tied to the financial industry that may be driving those numbers up. It would be interesting to drill down and see who actually vacated the space. How does this affect serviced office rentals? I’ve never seen data on that. I would guess in a market like Manhattan it wouldn’t bode well because folks who might otherwise use an executive suite may get bargain leases on traditional offices.