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BigMoose9000 t1_ja8lp8n wrote

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.


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.


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.