Tenant improvement allowances will be first to go, regional Newmark exec says

The commercial real estate market will see a change in
tenant improvement allowances before a change in rents, according to David
Falk, newly-appointed president of Newmark Knight Frank’s New York tristate
region. The longtime
broker said tenants have been taking advantage of receiving allowances to an
“obscene” extent, and that landlords have already begun to hold their
ground. Falk also said that under his control, Newmark will attempt to lure in
brokers from other firms. In talks with “at least 10 people” who may
make the jump to Newmark, Falk said he is “hearing a lot about the sagas that
are going on in the other firms. It’s interesting, but it’s not
surprising.”