Appeal of Short-Term Leases Grows in Manhattan
The New York Times reports: With the economic outlook murky at best, fewer tenants and landlords want to tie themselves to long leases. Both seem to be growing afraid of commitment.
Manhattan office leases often last 10 years, but there has been a noticeable uptick recently of leases lasting only one to three years. Some prominent landlords have begun playing up the availability of short-term leases in their buildings.
Charlie Malet, the executive vice president in charge of national leasing for Shorenstein, a real estate company based in San Francisco, which owns several office buildings in Manhattan, said that short-term leases were attractive for both landlords and tenants now.
"Landlords don’t want to tie up space for what they perceive to be a low rent," he said. "And if the tenants are a little uncertain about the long-term business environment, they don’t want to lock themselves into a 10-year deal."
Mr. Malet said that Shorenstein recently signed a one-year lease renewal with Harbor View Advisors, an investment advisory firm, at 850 Third Avenue. Shorenstein bought this 39-story, 1.2 mil. square foot office tower last summer. The price tag was around $325 million, according to Real Capital Analytics, a New York research firm that tracks sales of office buildings.
View the full article on The New York Times: Appeal of Short-Term Leases Grows in Manhattan
Posted by: Matthew Stone