Midsize banks grab office space as big banks downsize

Smaller outfits picked up nearly a million square feet since January 2013

New York /
Feb.February 19, 2014 12:38 PM

The downsizing by big banks has caused several of Manhattan’s office towers to bleed millions of square feet of space in recent years, but medium-sized institutions are slowly but surely moving in to fill the void.

Midsize financial firms, defined as those outfits leasing between 20,000 square feet and 100,000 square feet of space, have picked up almost 1 million square feet of Manhattan office space since January 2013, according to data from real estate services firm CBRE Group cited by the Wall Street Journal. Larger firms leasing more than 100,00 per square feet, meanwhile, have fallen flat in terms of added space.

Most of the mid-sized banks signing leases since January 2013 were also expanding, the CBRE data shows, with over 70 percent getting larger.

Downsizing by big companies appears to be “driving some of the smaller financial servies that seem to be popping up every day,” Steven Durels, director of leasing for SL Green Realty, told the Journal.

Still, there’s still a lot of space left to fill. The city’s ten largest banks — preferred landlords for tenants because of their traditional ability to shell out high rents — shrink their office space by 6 million square feet from 2008 to 2012, according to a 2012 report from International Strategy & Investment Group. Since that time, an additional 2 million square feet are either in the process of being dropped or will soon be shed. [WSJ]Julie Strickland


Related Articles

arrow_forward_ios
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
iCapital Network CEO Lawrence Calcano and 60 East 42nd Street (iCapital, ESRT)
Fintech firm doubles down at ESRT’s One Grand Central
Fintech firm doubles down at ESRT’s One Grand Central
Midtown South leads Manhattan’s office market recovery: report
Midtown South leads Manhattan’s office market recovery: report
Midtown South leads Manhattan’s office market recovery: report
195 Broadway in Manhattan NYC, Orchard Technologies CEO Court Cunningham and L&L Holding Company CEO David Levinson (Google Maps, Orchard, L&L)
Orchard Technologies leases 107K sf at L&L’s 195 Broadway
Orchard Technologies leases 107K sf at L&L’s 195 Broadway
Columbia Property Trust signs online mortgage lender at 799 Broadway
Columbia Property Trust signs online mortgage lender at 799 Broadway
Columbia Property Trust signs online mortgage lender at 799 Broadway
Office tenants nationwide are touring buildings at record numbers for the pandemic (Getty)
Tenants rushing back to tour offices, but things still far from normal
Tenants rushing back to tour offices, but things still far from normal
(iStock)
Delta force: Surging Covid variant spoils return-to-office plans
Delta force: Surging Covid variant spoils return-to-office plans
350 Mission in San Francisco and Yelp CEO Jeremy Stoppelman (SOM, Getty)
Yelp downsizes San Francisco HQ, delays return-to-office plans
Yelp downsizes San Francisco HQ, delays return-to-office plans
arrow_forward_ios

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

Loading...