In the rapidly evolving commercial real estate world, we’re seeing more and more startup companies trying to streamline the industry. From making it easier for tenants to search and find available office spaces that match their specific needs - giving landlords and listing agents tools to help manage their client base and internal data more efficiently - to bringing the space tour online with 3D movable floor plans and interactive panoramic views of spaces. There are so many interesting ideas sprouting up all trying to bring the industry that hasn’t changed in 30 years into the 21st century in different ways. A lot of them are popping up around coworking.
Another high-end department store is set to join the ranks of Saks Fifth Avenue by taking advantage of Manhattan retail space. Nordstrom has searched for a perfect Manhattan retail spacefor two decades and finally settled on a deal with Extell Development this week to open a 7-story, 300,000 square-foot retail monster, on the north side of 57th Street, east of Broadway.
After reading Method Method by the co-founders of Method, we became obsessed with the strategies and principles used by Method to become a successful company. For anyone who has not read the book, it is not only inspiring, but teaches entrepreneurs many lessons about launching a successful start up. And now, we are grateful to be able to feature Method's San Francisco office space as our office space of the week.
Trevi Retail, an 8-month-old real estate investment firm, acquired its 13th property this week for $13.5 million in an all-cash deal. Located at 189 Eighth Avenue and West 20th Street, the 9,000 square feet of New York City retail space also has a $6 million commercial mortgage-backed security loan, which Trevi Retail also acquired.
San Francisco-based company Salesforce.com is reportedly negotiating for 100,000 square feet of office space for lease at 685 Third Avenue, which was formerly inhabited by Pfizer. The transaction would more than sextuple the cloud computing company's New York presence, further confirming what this blog has already touched on in multiple occasions - the city's increasing attractiveness to technology firms.
These are very exciting times at TheSquareFoot. We soft launched our new product last week, we hired employee numero uno, and just this week we relocated our office space to the second floor of New Living in Rice Village. We are now officially coworking in Houston!
Normandy Partners, a New Jersey-based real estate firm, added some more New York City office space to its portfolio, with its purchase at 575 Lexington Avenue, between 51st and 52nd streets in the Plaza District. The 35-stories of Midtown East office space was redeveloped in 1990 by the Koeppel Companies and was bought by Normandy and New York Life for about $360 million, according to sources.
A question we get quite frequently at TheSquareFoot is, "How much office space do I need?" It is why we created our office space calculator to help prospective tenants gauge the amount of office space appropriate for their business needs. Typically we find that most small businesses and entrepreneurs think they need more space than they really do and our goal is get them into the right amount space for their business. Given all the discussion around the amount of space a company needs (general consensus traditionally was around 200 - 250 square feet per person), we created this infographic showing how much space different levels of seniority in the workplace use:
The Tribeca revival story was one that even its residents didn't think was possible, especially after the September 11 terrorist attacks. New businesses are finding ways to carve a niche into Tribeca office space and residential buildings are being added into the historic area, even with the neighborhood being low-density and having limited inventory.
The former location of a Syms store is the new home for City National Bank (CNB), a Los Angeles-based institution. CNB was eager to sign a 15-year lease for the Midtown office space, totalling 45,000 square feet at Waterman Interests' 400 Park Avenue.
Two family-owned buildings, across the street from one another, signed on new tenants to take advantage of the Midtown office space for lease, totaling 71,000 square feet. Located just three blocks from Grand Central Terminal, the two buildings, which are both in the midst of renovations set to include a new lobby and elevators, will be ideal locations for each of their respective new businesses.
Additional Brooklyn retail space to come online as part of a new hotel and residential complex that is slated for construction adjacent to Pier 1, just south of the Brooklyn Bridge. Early this week, the Brooklyn Bridge Park Corporation is expected to vote to select Toll Brothers City Living and Starwood Capital Group as the development team for the 1.3-mile-long New York commercial space.
Prestige Properties knows that it is a risk to break ground for the first suburban-style fashion mall to be built in New York City in nearly 40 years, but it's one that they are willing to take. Indoor malls have received mixed reviews, with shops at The Time Warner Center thriving, while outlets at the South Sea Seaport have struggled.
As previously reported on in this blog, New York is the new place to be for technology companies, and Sony has no intentions of being left behind in the search for New York City office space as it hopes to bounce back from a record $5.7 billion loss in the last fiscal year, which ended in March.
After the dot-com bubble burst in the early 2000s, many of the technology startups that had come to call Midtown South home no longer had the ability to remain in the area. As the vacancy rate of Midtown office space climbed, new technology companies sought more favorable locations for their needs. Now, many new startups are again flocking to Midtown South in search of affordable NYC office space for lease.
New York City is hardly a destination spot for aspiring farmers - despite the likely demand for these initiatives, there is not nearly enough open space in many parts of the city for farm land to be cultivated.
In a city full of them, Chelsea Market is one of the most widely known destination spots in all of New York City. With the more than 30 shops it has to offer tourists, the area has maintained most of the charm it has held since being constructed around the turn of the 20th century. This may explain why some New Yorkers and tourists alike are upset at a proposal to add two new buildings that would provide Chelsea office space to local businesses.
Any business whose lease is up within the next few years needs to begin its office space search several years in advance, particularly if it is attempting to acquire a location in the highly competitive New York City market. When the largest software company in the world needs to plan for a new location that has at least 200,000 square feet of space, that search becomes all the more challenging.
Space is very valuable to a business and every square foot of space can be utilized in some way. Sometimes, when moving into a new office, you realize that some of your items fail to fit in your preconceived layout, or maybe you are starting to realize that your inventory and equipment takes more space in your office. One of your options could be to cram everything in your office space, possibly causing a cluttered mess. Another possible option is to find storage. With those two options open to you, when does it make more sense to rent a storage unit instead of leasing more commercial space?