The Shifting Landscape of NY Real Estate & How it Affects Your Choices

Walking around the newly opened Hudson Yards I’m reminded how much NY has changed since I arrived in Feb 2001.

The Meatpacking District has changed beyond all recognition, aided by Google’s expansion, and rents have soared in Midtown South where previously undesirable old loft style buildings are in big demand from tech and creative companies. The Highline has brought high end residential development to a traditionally industrial area; Brooklyn has gentrified and the World Trade Center site has risen from the rubble of 9/11.

The knock-on effect has been to put pressure on the traditional areas of commerce along Avenue of Americas (6th Ave) and Park Avenue where old obsolescent buildings can’t compete with the efficiency and technology of the new stock.

However, it’s not just the physical landscape that has changed. The convergence of factors including technological advancements, a millennial workforce demanding agile and creative spaces, along with companies competing to capture and retain talent, has changed the way we work and what we expect from our work place. This has led to the explosion of the ‘flexible workspace’ industry in the form of well amenitized offices which are beginning to resemble hotels more than office space.

Definitions vary but here I’m using ‘flexible workspace’ to capture a range of different solutions as follows:

Coworking – The emphasis here is on shared work areas creating a sense of community and collaboration.

Executive Office – Companies share floors but have the privacy of their own offices.

Hybrid - This is the fastest growing sector and combines the elements of Coworking and Executive Offices whereby you have a private lockable office but plenty of amenities and communal areas too.

Managed Solution – An operator will find, customize and manage the space on your behalf. Usually for companies requiring one or more floors in a building for their own use.

Coworking and Executive Offices are ready to move in on simple license agreements, without the need for large capital expenditure. Terms are measured in months as opposed to fixed for 5yrs in conventional leases, giving you the ability to scale up (or down) or move neighborhoods as you settle in and become familiar with where your clients and staff are located.

Most importantly, you now have many choices beyond the well-known brand names like WeWork and Regus, with new ones added weekly.

When it comes to choosing your next office, I'll help you demystify the various options and shape your future work space. I provide a concierge style, impartial service to help you search and navigate the options that meet your criteria and hold your hand throughout the acquisition process. In the US it is standard industry practice for the landlords or flex space operators to pay the 'procuring broker' fee, so you don't cut a check/cheque for my services.

Whether you’re a tenant thinking about your next office move, a corporate wanting to adopt it, or a Landlord keen to work how to bring the concept into your own portfolio; I’d be happy to help you navigate the flex workspace industry.

Richard Sexton, MBE, CEO Office Concierge, +1 917 412 7478 [email protected]