Despite bargain rents, corporate relocations down

New York /
Jun.June 18, 2010 10:30 AM

Firms still wary of cost of moving


Studley’s new office at 399 Park Avenue

From the June issue: Inertia is king. Even fire-sale deals and oceans of available space in some of the toniest commercial quarters have largely failed to persuade companies to pick up and move during one of the great bargain periods in the history of Manhattan real estate.

In fact, the percentage of lease renewals versus relocations in the last two quarters — the lowest point for rents since the recession set in, according to some reports — has risen. The number of relocations over the past six months is dramatically down compared to previous fiscal quarters, according to data compiled by Studley, a firm that bucked the trend and moved its own headquarters in April from 300 Park Avenue to 399 Park Avenue. Experts say relocations likely won’t return in full until employment rebounds.

“We looked at [relocating] for ourselves and for a number of other clients,” said Jay Neveloff, a partner and board member at the law firm Kramer Levin Naftalis & Frankel, who works in the real estate and commercial transactions branch. “But all things being equal, if the space is right, almost any tenant is going to stay where they are.” [more]

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Northwind's Ran Eliasaf, 125 Greenwich and Bizzi & Partners’ Davide Bizzi
125 Greenwich is back in the game: Supertall condo lands financing
125 Greenwich is back in the game: Supertall condo lands financing
Vornado's Steve Roth with 1540 Broadway
Vornado writes down portfolio by $600M
Vornado writes down portfolio by $600M
Was the mortgage spike real? Applications level off
Was the mortgage spike real? Applications level off
Was the mortgage spike real? Applications level off
99 Washington Street (Google Maps, Getty)
Distressed FiDi Holiday Inn greenlit for migrant shelter
Distressed FiDi Holiday Inn greenlit for migrant shelter
Boston Properties' Owen Thomas (Boston Properties, Getty)
The commercial real estate recession is here: Boston Properties
The commercial real estate recession is here: Boston Properties
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...