Big Apple landlords tackle shorter leases, density backlash. Manhattan’s office market is in the midst of a series of fundamental changes that
Big Apple Landlords Tackle Shorter Leases, Density Backlash
Manhattan’s office market is in the midst of a series of fundamental changes that include tenants asking for and receiving shorter lease terms, a backlash against density – but not flexibility, and an uptick in demand for boutique, amenitized space, according to panelists at Mazars NY Commercial Real Estate Summit.
Age of the buildings, the shift from cubicles to open-plan offices, and a greater density per square foot are all factors for tenants.
One thing that is important is natural lighting, and tenants shopping for space often inquire about LEED ratings on a property as they attempt to gauge its livability. “The tenant generally never asks another question about LEED after moving in,” said Michael Pollack, counsel at Ballard Spahr.