From the August issue: Even as the Manhattan office leasing market starts to show some signs
of stability, velocity remains far below normal. To deal with the
pressure of the weak market, some landlords are offering double
commissions to brokers who sign deals in their buildings or are giving
crisp $50 bills to agents to simply show a space.
At the same time, brokers said there are landlords who are having a
hard time paying even a single commission, and who are trying to drag
out payments or reduce broker fees.
Rafe Evans, a vice president at brokerage and management firm
Walker Malloy & Company, said as the amount of space piles up,
commercial building owners and sub-landlords are using different
incentives to stand out. “They are trying to get noticed among the listings. They are trying to catch a break,” he said.
Financial firm Macquarie Group is offering a double commission for
the broker who subleases its space in 1345 Avenue of the Americas,
according to an industry source. [more]