Commercial Klutch: September Edition


The Manhattan office market is sinking inexorably, not like a stone but maybe like a bar of soap that don’t float...Huge amounts of institutional Class A space are coming on the market this year and next. Financial job losses are snowballing. Now, due to the lack of tightness in the market below 14th Street, tenants formerly considering leaving lower Manhattan for sunnier climes with great flea markets are being offered renewals at downtown Brooklyn prices. A 9,900-sf Montague Street deal is cratering due to this.

Luckily, much of our market caters to small tenants. Four chief sources of supply, in descending order of magnitude, reign supreme: DUMBO, the most active leasing market in the boroughs, continues actively - albeit at a slower pace than formerly; Gowanus, with several hundred tenants; Sunset Park, just starting as an office location with warehouse, small building rehab and new construction activity; and the ‘desk space movement’, more about that later.

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