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title: SMB dominate office activity | Noah Monthly 📰
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Midtown Office Update: April 2023 - SMB's lead the charge (and dominate recent activity) in Midtown's office market.

| View in browser April 2023 Seriously, how's the market? Over the past three years, it’s the question that I’m asked most frequently and often with an increasingly curious, if slightly sympathetic, tone. And for good reason.    For those reading the newspapers and following the seesawing news about office space trends, remote work, building loan defaults, and the ever changing return-to-office policies, the obvious and unequivocal conclusion would be that the demand for office space has flatlined across the board.    While there are indisputable concerns regarding the purpose, relevance and financing of office space, there are still pockets of demand showing strong signs of life that go largely unreported.    Fortunately, and with G-d’s help, we’ve witnessed this demand in our business. Starting in the second half of 2021 and continuing until to today, we have recorded a progressively increased number of transactions, quarter over quarter and year over year.    Reporting on the small-medium sized business market doesn’t sell papers, but the volume of their collective space decisions at the bottom of the triangle tells an important story; according to a study by The Partnership for New York City, 90% of the city’s small businesses have fewer than 20 employees.   While this core market of SMB companies that we serve are surely impacted by market changes, their conviction surrounding both the necessity of an office and the vitality of Midtown has not wavered. These groups truly represent the engine that drives the diverse and dynamic economy of Midtown Manhattan (and the American economy overall). With their niches and nimbilite, these organizations deal far better with uncertainty than the colossal giants paralyzed by indecisiveness when making long term real estate decisions.   So, while there is certainly more vacant space than there was before Covid, we have seen an abundance of activity (at very favorable economics) from this silent majority of tenants, looking to secure their futures in Midtown with lease renewals, expansions, right-sizes, and relocations.    Questions? Curious? Care to discuss more?    Reach out anytime! Until next month, Ben Ben Blumenthal Principal Broker \| Noah & Co.   P.S. Some real-time thoughts from real-time conversations - Why flight to quality doesn't always mean new construction - 5 things you're missing when negotiating directly with your Landlord - The many benefits of Midtown specialization    The Best of April    Between the continued increase in available (and extremely discounted) sublease space and an overall repricing of office buildings, companies in the already tenant-friendly NYC office market have taken advantage of discounted rents and larger concession packages to lock in new deals. So where is the latest action? Pleading the Fifth - Business media firm PEI Group locked in 14k+ SF at 530 Fifth Ave. - Pizza delivery service Slice downsizing into Zar Property's 349 Fifth - Raise Commercial Real Estate is heading to 185 Fifth Avenue Best of the West - Seedtag Avertising opened its first US office at 15 West 27th St. - Paramount inked Wilson Sonsini to a long-term deal at 31 West 52nd. - Securitas Security Services moving to ~20k SF at 498 Seventh Ave. - Kohler set to open its first NYC office at 1140 Broadway Renewals & Expansions - Clothing wholesaler 209 Group expanding to 4,600 SF at 209 West 38th - Extron Electronics renewed its Garment District space for 5 years - Nonprofit Claims Conference moves & renews within 1359 Broadway    New guidance calls for 2M federal workers to return to the office Read On After botched sale, Flatiron Building will hit auction again on 5/23  Read On MTA initiates eminent domain for 2nd Ave. subway extension Read On The future of NYC's outdoor dining sheds remains up in the air Read On 10 floors of Rock Center office space to be converted into hotel Read On Impact of remote work on young workers?Less supervision Read On Noah & Co., 600 Fifth Avenue, 2nd fl., New York, NY 10020, (212) 947-7120 Manage Preferences |
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