Advertising giant WPP cuts up to one-third of NYC office space - Business Insider

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WPP is ditching several New York offices as the advertising giant looks to slash its real estate costs by 20%

It has been subleasing some of that space to other businesses in recent years, according to knowledgeable sources. A recently departed executive said Ogilvy now employs fewer than half the 1,200 people who worked at the company when it first moved there.six floorsGrey has shrunk in recent years, and two people said the Grey and Ogilvy will fill four floors in the building while other WPP agencies such as PR giant Burson Cohn Wolfe and branding firm Landor occupy the other two levels.

in rent over the life of the deal. The offering will add to a fast-growing inventory of sublease space on the market. Roughly 18 million square feet of sublease space were available in Manhattan at the end of the third quarter, according to real estate services firm and brokerage Cushman & Wakefield, a sharp 70% increase from the same period a year ago.

About three million square feet of sublease space was added to the market in the third quarter alone, according to Colliers International, 40% of it from technology, advertising, media, and information tenants, a group often referred to as the TAMI sector. "Because of the economic impact of the pandemic, tenants are seeking a reduced headcount and don't need as much of a footprint," said Franklin Wallach, a senior managing director who handles research at Colliers International. "For some it's a downsizing; others may want to shift some of their space outside of the city."

 

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