Submitted by psychothumbs t3_11dbqqj in nyc
BigMoose9000 t1_ja8lp8n wrote
Reply to comment by sirzoop in Midtown Owners Hedge on Costly Office-to-Home Conversions by psychothumbs
Honestly surprised it's that low
If there was a way to measure "under lease but effectively vacant" it'd probably be a lot higher
mr_feenys_car t1_ja8w53f wrote
my company is in this situation now.
signed a 5-year, full-floor lease immediately before the pandemic. absolute worst timing for it. during COVID we shifted to a more dispersed org structure.
outside of a few corporate on-sites and team-building days, no one is in the office. i go in once every couple months just to switch things up, but it's a ghost town. can't even use it to host client-facing meetings, because it makes us look like a scam company.
WatchesAndNYC t1_ja9lxca wrote
A company I work with did a 30 year 10 full floors of a building in 2018, and the staff is now completely remote except a small team I’m on that meets there once a month. It’s absolutely insane to see it so empty. All that space, all that money, just going to waste. They leave the lights on 24/7 just to help the city look a bit more alive haha
columbo928s4 t1_ja9tke0 wrote
can the company not sublease it out?
pedalbot_0785 t1_ja9z42e wrote
to whom tho?
columbo928s4 t1_ja9zsd8 wrote
yeah i mean that's the big challenge, but i assume if they're willing to take a substantial haircut on the $/sqft they can find a tenant, and having a tenant pay any portion of their fixed lease costs seems preferable to just eating the full cost of a 30 year 10 floor lease if they are legitimately never using the space
ctindel t1_jadwcvl wrote
Signing a 30 year lease for office space just seems so stupid at face value anyway even before the pandemic.
kjuneja t1_jadl8vy wrote
No exit clause? Amateur hour
kiklion t1_ja8qyxl wrote
Like places that are under lease but only 50% or less utilized due to hybrid/WFH companies who don’t plan on renewing or downsizing if they do?
BigMoose9000 t1_ja9cjfb wrote
Yea, commercial leases are typically for longer terms. My company has a couple offices they've been trying to sublease for years now that are basically abandoned. When the leases expire it's hard to imagine the landlords will have any more luck.
[deleted] t1_ja90dnp wrote
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hjablowme919 t1_ja9rqom wrote
Two months ago I would have been surprised it was that low. However, as I have been applying for jobs in NYC, I see more and more jobs requiring you to be in the office at least 3 days a week. I just told a recruiter "No" to a job that requires 5 days a week in the office. I told him "Do they know it's 2023? Who is asking for 5 days a week in the office for a tech job?"
DkTwVXtt7j1 t1_ja8zzvy wrote
Yeah my office is under lease but we aren't renewing. The number will grow.
secretactorian t1_ja9m8qm wrote
That was my former office. Room for 30, but maybe 3-5 ppl were in on a 1 day/week basis.
They're in a CBRE office and looking to downgrade but there aren't any smaller spaces in the building. A lot of the small spaces are being or have been snatched up. Gonna cost them a lot to break the lease.
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