New York City’s nonessential workers have already spent close to two months working from home , and the state of Manhattan’s office market shows it.
Though the death of the office is unlikely, businesses may well need to downsize, find ways to spread workers further out in the spaces they have, and keep others working from home — all of which is likely to drive down prices in a market that, prior to the pandemic, had been near a 20-year peak. Many large companies with headquarters in the city already make use of suburban spaces, and while offices in these areas are notably cheaper than their Manhattan counterparts, they’re also in shorter supply. “The office stock in places like the Westchester suburbs is limited,” said Teresa Marziano, a salesperson with Houlihan Lawrence in Westchester. Areas like Stamford [in Connecticut] offer more options, she said, “but there’s still not a lot of vacancy.
Add to this the fact that office leases can last anywhere from five to 15 years, and the incentive for businesses to stay put in their current space is strong. Downward pressure on rents While Manhattan office prices have yet to reflect the effects of the pandemic, lower prices are considered to be all but a given as landlords become increasingly eager to keep existing tenants in place.
How long they’ll hold stable is largely dependent on how long the current crisis lasts, and how much the bottom lines of the city’s office tenants suffer as a result.
When the lease is up at my office I will not renew and look for a smaller location near my home. All of my employees will be working from home anyway.
Wow
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Then commercial real estate is over.