Office leasing experts debate if NYC at bottom

TRD New York /
Jun.June 25, 2009 10:26 AM

Two of the top Manhattan office leasing brokers said rents had further to fall on a panel yesterday, but Newmark Knight Frank CEO Barry Gosin took a different stance.

Robert Freedman, executive chairman of FirstService Williams said the market needed another 12 to 14 months before hitting bottom, and large sublease blocks needed to be absorbed first. Peter Turchin, executive vice president at CB Richard Ellis, said it might be another year before prices would pick up.

But Gosin said following the fastest price discovery he had ever seen, leasing values are about at the bottom.

“Usually I am the bear in the group, this is hilarious,” Gosin said. “I think prices are pretty well established and I think we are bumping along the bottom. I don’t think there is a significant decline left in the market.”

The roundtable discussion also included Peter Riguardi, president of Jones Lang LaSalle, and Paul Massey, CEO of Massey Knakal Realty Services, and was part of a series of four panels hosted by Schein Media and NYInc Magazine yesterday morning in Midtown.

Several speakers noted the shift to leasing smaller spaces. Turchin said most of the demand currently is from small tenants, many looking for pre-built space.

Riguardi said a fundamental change in the economy tied to smaller financial shops will impact leasing prices. He said the large firms were shedding workers who were starting smaller shops, who then earn less money.

“They are eating what they kill, and that is going to change the dynamic of office needs,” he said.

Freedman added to Riguardi’s point: “The rental structure will probably have to reflect that economic reality.”

Related Articles

Fosun Property’s Bo Wei, Refinitiv’s David Craig and 28 Liberty Street (Credit: Getty Images, Google Maps)

Fintech firm signs on for massive lease at 28 Liberty

From left: 333 Johnson Avenue, 250 Livingston Street and 12 MetroTech Center (Credit: Google Maps)

City agencies dominated Brooklyn’s biggest office leases of 2019

Savannah's Christopher Schlank with One Court Square and Tishman Speyer's Rob Speyer with the JACX at 28-10 Queens Plaza South (Credit: Getty Images, One Court Square and CityRealty)

LIC dominated Queens office leases in 2019

Amazon CEO Jeff Bezos with 410 Tenth Avenue and 1251 Sixth Avenue with Mitsui Fudosan America’s John Westerfield (Credit: Google Maps, Getty Images, Wikipedia)

Amazon’s West Side deal tops list of Manhattan’s biggest December office leases

437 Madison Avenue, 50 Hudson Yards, and 1 New York Plaza (Credit: 437 Madison, Hudson Yards, Wikipedia)

Manhattan office leasing just had its most active year since 2001

Clockwise from left: JLL's Michele Mahl, Savills' Peter Hennessy, Eastdil Secured's Will Silverman, Christie’s Brian Meier, Nest Seekers' Mike Fabbri and Compass' Charlie Attias 

These were the biggest broker comings and goings of 2019

30 Hudson Yards, 532 Washington Street and 401 West 31st Street (Credit: Wikipedia, COOKFOX, StreetEasy)

NYC’s 10 most valuable office leases of 2019

From left: 50 Hudson Yards, 341 Ninth Avenue, 30 Hudson Yards (background) with Google's Sundar Pichai, Amazon's Jeff Bezos and Facebook's Mark Zuckerberg (Credit: Google Maps and Getty Images)

Big tech puts Manhattan office leasing within reach of annual record