Real Estate News – May 6, 2023

Attached is an article from the New York Post entitled ”How snappy, pre-furnished office spaces get companies moving fast”.  The article states that there is 25 million square feet of furnished and wired sublet office space that landlords are competing with. As a result, some landlords are wiring and furnishing their direct space. Typically a tenant needs a rent that is $3 to $5 per square foot less than what they are currently paying to relocate in order to cover the cost of wiring and furniture for the new office space.   For example, if  a Landlord offers a renewal rate of $60 per square foot,  the tenant needs a deal of less than $57 per square foot to make it feasible to move. The landlords that are paying for the wiring and furniture of direct space are leveling the playing field of direct and sublet space and making it more feasible for a tenant to relocate and increasing the possibility of a tenant achieving a rent savings with a relocation.