4 Things We've Seen in NYC Real Estate Market last 30 Days
What's Changed for NYC Tenants?
Last week, we posted an update on the NYC market with recent data relevant to you as you contemplate your real estate situation and next steps; now, we want to follow up with what you won’t find in the data: 4 scenarios we’ve seen and negotiated in the last 30 days, and why they matter to you.
Each scenario below is different (and yours may be too), but they all have two things in common:
They are all examples of free rent given by Landlords – no deferment, no payback, and no additional term on the lease needed. This is only now becoming more common.
The Landlords in all 4 scenarios recognized that working with their tenants on a solution is far better than facing vacancy (or occupancy by a non-paying tenant) in a market where the Manhattan vacancy is now at a 24 year high of just over 13% (The Real Deal).
We negotiated with a privately held Landlord on behalf of our medical practice client with office space in Downtown Manhattan to get their rent reduced by 30% until January of 2022. Our client simply pays 70% of their pre-COVID rent until January of 2022, at which time they revert back to their original rent schedule.
We negotiated with a different privately held Landlord to reduce our client’s rent by 15% on a month to month basis; rather than defining a set end date for the rent reduction like above, this Landlord was willing to keep the timeline open-ended and reevaluate based on our client’s continued hardship and the market situation.
We negotiated with another Landlord to reduce our client’s rent by 50% for 2 years; our client will pay 50% of its original rent until the end of 2021 and will pay 50% of rent owed since the beginning of the pandemic.
We negotiated with a large, publicly held Landlord who agreed to let our client (their Subtenant) out of their lease if they agree to get current on rent and give up the security deposit. Our client owed 3 months in back rent and had a large security deposit in place, but together this was only 20% of their total remaining lease obligation paid to successfully exit the lease.
As we wrote last week and as illustrated by the above, you as the tenant are in the driver’s seat. Every real estate situation is unique, but we’ve seen it all (maybe not all, but most!) and we’re committed to exploring traditional and creative paths to find a solution that works for you and your company.