Last week I attended a networking event at NYU poly labs hosted by CBS alumni who office there. I had a chance to catch up with our buddy Ben Zhuk of BestVendor. Trying to fish for some business, I asked him what happens when people outgrow their space there. He said most try to take over a lease of a startup who is in a space that has grown too small for them as they themselves need to expand. I told him those are great if you can find them, but they aren’t abundant in most markets.
We hear it all the time. Prospective tenants are sometimes wary about using a tenant broker because they think A) there is a fee involved, B) the broker may not be a market expert and know the best options available, and C) landlords charge higher rent for tenant who use a tenant broker to sign a lease. TheSquareFoot has certainly addressed A and B ad nauseam, and we need to flush out C just so everyone is clear on how the system works.
It's always interesting to compare commercial real estate leasing trends from market to market. Different cities and regions produce unique leasing landscapes and a tenant leasing office space in Houston Texas may value certain amenities differently than a tenant leasing space somewhere on the East Coast. According to a recent article in Globe Street, CBRE sent an anonymous survey to decision makers of more than 100 large tenants across the state of New Jersey ranking the most important "must-have" amenities in an office building.
After reading this article on leasing trends in commercial real estate, we began to think about what the metrics meant for tenants. Loopnet put together a very good info-graphic (below) on lease versus buy trends and I thought a few statistics were interesting from a prospective tenants viewpoint as they lease new or renew space for their business -
The always awesome Mark Suster posted on New Years his new year's resolution to spend more time on "the right side of the Haimish line" which is a term that was coined by David Brooks here. I highly recommend reading both Suster and Brooks in their entirety as this notion of the hamish line it is a great way to have a more fulfilling year. I agree whole heartedly in getting out in the mix. It's why I try to strike up conversations with those around me where ever I am. There is always something new and interesting to learn from others.
After reading a recent article on the dark side of co-working, we thought we would chime in. It comes as no surprise that co-working is starting to see some backlash among small businesses and contractors. As a relatively new solution to traditional office space in the U.S., co-working has taken off like a wildfire. If you are on either the west coast or east coast and involved in commercial real estate or you are looking for real estate – you certainly have seen all the cool, open, innovative co-working solutions. It is starting to pick up everywhere else, but it seems the coasts have taken the lead.
For the first time since 2010, U.S. banks committed more in lending to commercial real estate projects than they did in the previous quarter, according to a national report. With improved access to financing, more businesses may have the financial backing needed to consider securing office space for rent in top metros such as Dallas, Houston or New York City.
Real estate experts have long tied the industry's fortunes to the strength of the nation's job market, and now many say the right type of growth is occurring to positively effect several corners of the market - including commercial real estate.
In relocating from Madison Avenue to Liberty Plaza, one asset management technology firm will expand the size of its New York City office space while establishing a new home for the next 16 years, according to a report.
Expansion is a welcome challenge for most businesses, and with it comes a variety of decisions. One of the most important may regard the business' physical location, and whether or not a company wants to buy or lease its new home.
Office leasing in New York City climbed in February from the previous month, though the square feet of commercial real estate leased during the first two months of 2012 was down on a year-over-year basis, according to a recent report.
For businesses considering retail space for rent in top metropolitan areas such as New York, Dallas, Austin or Houston, it has never been unusual to base this decision off of intangible factors, such as instinct or the general "feel" towards the property.
The latter six months of 2012 will provide greater opportunities for commercial real estate investors and property owners to profit from increasing demand and rising rents. However, for businesses seeking office space for rent in top metropolitan markets like New York and Dallas, it may be wise to begin considering options now, before vacancies become too tight.
Though it may have previously been known for a high volume of industrial tenants, Brooklyn's 17-building Industry City at Bush Terminal complex along Third Avenue has seen increased office leasing activity from a diverse array of business, including creative and technical professionals.
Financial services heavyweight Morgan Stanley is already a large tenant at One New York Plaza in Manhattan, but the corporation may lease more New York city office space in that building, according to The New York Post.
Real estate observers in New York City were encouraged by recent reports that financial services corporation Morgan Stanley would expand its commercial real estate lease at One New York Plaza in Manhattan. While that company's expansion may have been a sign of an improvement environment for New York office space leasing activity, experts say the local market has still been stifled by the challenges faced by several Wall Street businesses.
Another report on the commercial real estate picture in the United States points to the continuing demand for new office and warehouse spaces driving up office leasing activity in key markets around the country.
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.