Straight Talk

A message from Ben Blumenthal

The top question that our team is asked on a monthly basis revolves around one point: "Is this a good deal?"

Whether it's a renewal notice from a current Landlord or in reference to a potential relocation, our answer is generally the same:

"... a good deal relative to what?"

There are many pockets in the Midtown office market, various subtleties from building to building, and countless companies with their own specific requirements. The market that each tenant encounters is ultimately a function of what it's always been: supply & demand.

For smaller/boutique, plug & play spaces in Midtown East, there is an incredible amount of demand with minimal supply. For larger enterprises seeking a new HQ, there is a deep supply of availability with limited competition.

So while it’s easy to paint a broad picture or adopt a singular narrative as to where the market stands today, the tenant/landlord leverage dynamic is one that is constantly evolving and certain to continue along that path.

That said, we've fortunately been our busiest since March 2020 and expect to see continued activity to close out the year, with a record number of office leases set to expire before the end of 2022.

Until next month,

Ben

Ben Blumenthal

Principal Broker

Noah & Co.

The flight-to-quality trend continued its exponential growth in Q2, as tenants in the market for office space overwhelming flocked to newer and amenity-rich buildings - leading to a 5% growth in leasing activity from Q1 2022.

Some of the more noteworthy deals to close:

• Xomox Jewelry signed a long-term lease at 240 West 40th Street
• Investment Manager AXA is leaving 711 Third for 340 Madison
• AcessiBe doubled its space, moving to 9k SF at 1140 Broadway
• Law firm Arendt & Medernach grew its Rock Center offices
• Nonprofit NAC secured 60k SF office condo at 825 Seventh Avenue
• SL Green announced two long-term leases at 750 Third Avenue
• Fintech firm iCapital expanded its footprint for the 4th time at One GCP

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