Class B and Class C office building owners are facing low occupancy rates, uncertainty and new strategies to attract tenants. Some owners are strictly betting on price while others are considering flexible work space as a viable alternative and total repositioning.
The post pandemic market has not favored Class B and C buildings. Owners of these properties are accepting short term leases at low prices to increase cash flow.
Digital media, advertising and marketing firms compromise the majority of tenants leasing short term flexible lease transactions. These firms alternate between remote work and a physical office, and this minimizes their office space needs.
Flexible space locations are moving beyond Manhattan as well to the outer boroughs. Co-working space is in demand near employees’ homes. Remember companies follow people.
It’s important to have a broker who understands today’s market if you’re interested in flexible and permanent space. Call George at 646 312 6800.