AUGUST, 2020
Armano real estate has been busy modifying and terminating leases for tenants. We have been achieving occupancy cost savings in the 18% to over 80% range depending on the case and type of strategy.
Safely re-occupying office space and re-positioning the office based on future workplace trends and business prospects is of utmost concern to employers.
We have been providing lease analysis and preliminary space programs for tenants no-fee. This allows tenants to gain a better understanding of their current situation and to help formulate the best possible corporate real estate strategy and vision in a changing market.
Please reach out to us to arrange a call or Zoom meeting to discuss how we can create value for your organization through creative real estate strategies. We will help you to make the best corporate real estate decision and to position your company for future success.
NYC Update
Fewer than one-tenth of Manhattan office workers have returned to the workplace. Major financial institutions like Citigroup and JPMorgan Chase have allowed only a small number of traders, bankers and other employees to return to the workplace. Technology firms have been even more tentative. CEO Mark Zuckerberg said there’s no timetable for bringing workers back to the company’s offices.
Armano Real Estate estimates that between 5-10% of all employees who work in Midtown and Downtown have returned to the office. However, we believe that office re-occupancy will increase after the Labor Day holiday is over.
Space availability is increasing as tenants are generally looking to reduce their footprint and dispose of excess space. Sublet space now accounts for 25% of all available space on the market. Landlord’s, however, have been resistant to drop asking rents. Armano Real Estate is seeing asking rent changes in the 0-10% range depending on the landlord and building.
Many landlords, however, are increasingly receptive to modifying their tenant’s leases. Armano Real Estate has been extraordinarily successful in this regard.
Armano Real Estate expects office rents to drop approximately 20% from March 2020 highs. We believe that trough pricing will be realized early to mid-2021. Thus, we encourage tenants to proactively use this window to engage the market and explore options to best reposition their corporate real estate.
Please see the below links for additional information and resources regarding NYC re-occupancy.
NYS Guidelines
Reopening New York
Phase Four Industries
Positive COVID-19 Results by Region
