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title: The above-market office lease renewal  | Noah Monthly 📰
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Midtown Office Update: March 2023 - More than ever, companies are choosing to renew their office leases - and are leaving $ on the table!

| View in browser March 2023 The Price is (may not be) Right Renewing your lease is often the easiest route; are you approaching it correctly?   While some organizations can be more nimble than others, relocating your office can be a significant cost (both monetarily and time-consuming) and cause a major disruption to your business.   As a result of the market's latest volatility, we’ve helped a greater number of clients renew their existing leases than in recent memory. While many of their individual motives for renewing have been similar (ie. minimal disruption, quicker deals, aversion to change), there has been one common denominator: a desperate Landlord - one facing increased vacancy in their building, slower demand for space, and maintaining a “do-anything-to-keep-a-tenant” attitude. However when it comes to renewals, there are two types of deals you can get: One that leverages the current market to your advantage One that only uses your existing deal/terms as comparison Being able to leverage credible alternatives is a key factor when it comes to achieving a fair market rent and a concession package of free rent, TI, special rights and terms, etc. The absence of this information typically leaves an informational asymmetry with the Landlord, who simply gets away with providing much less than what the tenant deserves.    Curiously, we often hear from shrewd business owners who accept deals that simply don’t reflect the market. Whether it’s inertia or simple distraction, Landlords are not compelled to extend the most competitive deal to captive tenants who show no legitimate interest in credible alternatives.    So if I had to leave Midtown tenants with one message this month it is this:   Become educated on the office market, explore your credible alternatives, and proactively explore different ways to achieve the best deal for your business needs.  Or, you can start by giving us a call and asking us to do it for you ;)   Until next month, Ben Ben Blumenthal Principal Broker \| Noah & Co.   P.S. Several interesting Twitter threads - How to spot a cheap sublease opportunity - How we stay busy - The bigger the cheaper: 6 picks of 50k square foot subleases    The Best of March    While the overall sizes and the length of their office leases continue to change, the majority of companies still want to maintain an office space - with a flight to high-end space continuing to lead the charge. So where is the latest action? Staying Put - Sports betting firm Simplebet renewed its 9th-floor space at 373 PAS - Touro adds 66k SF at 3 Times Square, now occupies over 300k SF - Wealth fund Temasek will remain at the Seagram Building for 15+ years - O&S Associates is renewing its 4,800 SF space on Eighth Ave. AoA is A-OK - Axis Insurance moving its HQ several blocks south to 1166 AoA - 1330 AoA will be home to Rubenstein PR for the next 10 years - Brookfield will welcome private-equity firm Hg to 1114 AoA Moving to Midtown - STV is relocating from Union Square to the Empire State Building - From FiDi to Midtown, JSM Music will open shop at 28 West 44th St. - Aviation firm evoJets locked in the penthouse at 220 East 23rd    Forget Vornado - Gov. Hochul pushes Penn redevelopment ahead Read On An iconic NYC building will be sold in a public auction on March 22 Read On If at first you don't succeed... sale of HSBC Tower collapses again Read On Construction to begin on Broadway for 2 new pedestrian-only plazas Read On NYC to LGA AirTrain project on hold - focus shifts to bus systems Read On East-side waterfront promenade inching closer to completion Read On Noah & Co., 600 Fifth Avenue, 2nd fl., New York, NY 10020, (212) 947-7120 Manage Preferences |
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