NYC’s Financial District Faces Office Glut as Tenant Exits Loom
Manhattan has been battered with workers staying home
Our Take from Brownie Bytes: This is happening throughout the country. Bad time for commercial real estate. Great time to consider a move to Florida – a no-state income tax location with a great workforce ready to work remotely from anywhere.
Companies looking to trim costs are trying to shed space
JPMorgan Chase & Co. is the latest high-profile tenant to look for an exit from the neighborhood, a historic part of lower Manhattan that is home to the New York Stock Exchange and Federal Reserve.
S&P Global and Fitch Ratings Inc. are also marketing big blocks of offices, driving an 80% surge in the amount of sublease space available. That’s more than double the rate in Midtown, according to data from CoStar Group Inc.
“The sublet spaces currently on offer at deeply discounted rates is a veritable flood of biblical proportions, with more likely to come online soon,” said Ruth Colp-Haber, chief executive officer of brokerage Wharton Property Advisors.
Manhattan’s office market has taken a big hit in the past year, with the pandemic emptying out skyscrapers and pushing cost-conscious companies to reconsider how much space they need after months of remote working.