NYC Office Landlords Build Smaller Spaces

The New York Times published an article today titled "New York Office Landlords Go Small", commenting on the choice some office spaces are making to turn large vacant blocks of real estate into smaller, pre-built offices as the commercial real estate market continues to see vacancies on the rise. "In the past, landlords would have been less likely to break up whole floors, because it is easier to do one single transaction," said Peter Turchin, an executive vice president at CB Richard Ellis. "But that’s not where the market is now."

According to a report from Cushman & Wakefield, the first quarter of 2009 in Manhattan saw nearly 85% of the leases inked for spaces under 10,000 square feet, with another 11% in the 10,000 to 25,000 square foot range. Brokers say such a strong tilt toward small offices is unusual in New York, where the financial industry, in particular, has traditionally rented large blocks of space.

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Comments

[NYC Office Suite Services]

That's interesting that landlords would be willing to have to deal with more people, but I can see why businesses would want to rent smaller spaces in this economy. Renting temporary office spaces could also be a smart alternative when an office in the big city is only necessary for a short while.

[Office for rent]

Small spaces are for those small time business or starting in a business. thanks for the post.

Margarette Smith