From the September issue:The Manhattan office leasing market tightened last month even as the unpredictable stock market and stalled national economy unsettled landlords and tenants alike.
Landlords, who have seen their leverage strengthen over the past year, lost a bit of confidence because of the new round of economic turmoil, some Manhattan brokers said.
“The market was rising rather quickly, particularly in the better product and the better locations, [but] I think tenants’ expectations [now] are that the deals should be improved and they should be more aggressive,” David Hollander, a senior vice president at CB Richard Ellis, said.
But that doesn’t mean that most tenants are chomping at the bit to get deals done. Some are becoming more cautious, which is further unsettling landlords. “It is a question of confidence,” George Keller, a senior director at Cushman & Wakefield, said. “Everyone is saying, ‘Let’s sit tight for a while,’” he said. With the recent layoffs at financial firms, he expects more sublease space to be put on the market in the coming months. Meanwhile, unlike the last few months, there were no blockbuster leasing deals in August. [more]
