Articles of the week ending August 30th
The Ghost Of Office Past, Present And Future_ How Landlords Are Managing After WeWork’s Bankruptcy
By Sasha Jones, Bisnow
Landlords are grappling with the aftermath of WeWork’s bankruptcy by renegotiating leases, struggling to fill vacated spaces, and facing financial distress, while some have successfully reoccupied areas with new tenants, such as other coworking operators.
Helmsley Building risks becoming obsolete as owner RXR Realty eyes residential conversion
By Aaron Elstein, Crain’s New York Business
The Helmsley Building in Manhattan is struggling with declining occupancy and tenant retention, is heavily in debt with a significant portion rated near default, and RXR Realty is considering a risky conversion to housing to avoid the building becoming obsolete, amid rising borrowing costs and a competitive market for office spaces with modern amenities.
GFP, Brodsky, Sorgente aim to build 60 condos at Flatiron Building by 2026
By Eddie Small, Crain’s New York Business
Developers GFP Real Estate, Brodsky Organization, and Sorgente Group plan to convert Manhattan’s historic Flatiron Building into 60 luxury condos by 2026, alongside retail space, amid a trend of office-to-residential conversions in response to housing shortages post-pandemic.
Federal Reserve Chair Signals September Rate Cut
By Sheridan Wall, The Real Deal
Fed Chair Jerome Powell indicated at the Jackson Hole Economic Symposium that interest rate cuts are imminent due to falling inflation and rising unemployment, which could stimulate the housing market despite sluggish home sales and tight inventory.
Eric Adams Planning to Slash Municipal Office Footprint
By TRD Staff, The Real Deal
New York City Mayor Eric Adams is urging agencies to identify underused office space for potential cost-cutting, which could negatively impact local office landlords as municipal needs decrease post-pandemic.
Bungalow Projects Files Plans for Bushwick Production Studio
By Rich Bockmann, The Real Deal
Bungalow Projects and Bain Capital have filed plans to construct a 300,000-square-foot production studio in Bushwick, Brooklyn, as part of their strategy to develop approximately 1 million square feet of studio space in New York.
Rents Tick Up While Concessions Decrease For Best-In-Class Office
By Ciara Long, Bisnow
A recent CBRE analysis indicates that rents for Class-A and trophy office properties are expected to continue rising, while rents for lower-tier Class-B and C buildings are declining, leading to an overall projected decrease in office asking rents of 1.8% by mid-2025.
NYC Developers Failing To Apply For 421a Tax Break Extension
By Suzannah Cavanaugh, The Real Deal
The low number of applications for 421a extensions, with only 315 submitted as the September 12 deadline approaches, reflects confusion and ignorance among developers, potentially jeopardizing crucial tax breaks for stalled multifamily projects amid New York City’s housing crisis.
Index Shows 1 In 6 U.S. Office Buildings Are Strong Candidates For Residential Conversion
By Billy Wadsack, Bisnow
An index reveals that less than 15% of U.S. office buildings are suitable for residential conversion, with Manhattan leading at over 53%, amid record-high office vacancy rates and increasing efforts from city officials to incentivize such transformations.
Foot Locker Walks Away from Vornado-owned NYC Headquarters
By TRD Staff, The Real Deal
Foot Locker is relocating its headquarters from Manhattan to St. Petersburg, Florida, next year while maintaining a limited presence in New York City despite its lease at Vornado’s 330 West 34th Street expiring in 2031.