Delphi Real Estate Blog

February 5, 2010

NYC Real Estate: Whose Kool-Aid Are You Drinking?

Filed under: Uncategorized — Jonathan Rudes @ 5:37 pm

– The up-tick in leasing activity in December sent the talking heads of NYC real estate to proclaim that the worst is over, leading landlords to believe that they will be able to achieve the inflated rents needed to stay solvent.
– In contrast, Goldman Sachs put 1.5 million square feet of office space on the market; 1.1 million square feet still looms at 11 Times Square; and Ogilvy has left behind a block of 740,000sf.
– To add more confusion, enter Cushman & Wakefield’s latest appointed leader quoted in Crain’s Feb 2, 2010: “as the country emerges from the recession there will be ample opportunities for success.” He says that banks will eventually foreclose on buildings and they will need to be sold.

More than ever, securing the best space at the lowest price requires greater due diligence to reveal the hidden opportunities.

We understand the market and know where your best opportunities are.

Deals of Note
One very significant transaction of note is Hachette Fillipachi’s signing of a sublease for 132,000sf from Time, Inc at 1271 Avenue of Americas. They are downsizing from the 263,000sf at 1633 Broadway as well as paying a discounted sublease rent. The fact that it is from Time, Inc just proves that recessions make strange bedfellows.

Featured Sublet Spaces:

– 25,000sf on Broadway until 2015
– 4,500sf on Broadway until 2014
– 8,000sf on Hudson Street until 2017

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