TENANT SWING

Tenants are now catching a break in New York, with the pendulum swinging in their direction. Expect more space, cheaper rents and greater concessions, said CresaPartners principal Marcus Rayner when we visited his Park Avenue office. Now’s the chance to reconfigure workspace for future needs without the pressure of missing opportunities—but if you don’tplan, you can’t take advantage of the market.
Brokers, especially tenant reps, will also feel the changing landscape. In the short term, they’ll need to know how to negotiate flexibility in long-term leases and how to protect clients from defaulting landlords and sub-landlords. In the longer term, they’ll need to spend more time planning and consulting with clients to understand how issues such as employee mobility will affect future demand for space.
But have no fear—Marcus (with colleagues Jennifer Lamb, Ken Witler and Paul Weir) provided us with tips for both clients and brokers looking to benefit from this market:
  • Tenants: plan for the future and understand how new workplace developments can lower your occupancy costs; hire a broker who truly represents your interests; and negotiate harder by understanding where the real savings are created in negotiations.

  • Brokers: if you're not a tenant rep, business could be slow for a few years; make the most of this market and the shift in the services you will need to provide your clients. If you can expand your platform with integrated services, you'll be better placed to build long-term client relationships.

  • All: balance your work with life. This will be a stressful time for anyone in commercial real estate and we all need to be inspired outside of work, he says (Marcus enjoys indulging his family and absorbing himself in historical fiction and a variety of the arts).

Continue reading this story with a free account

Log in or register
Related Topics: Marcus Rayner , Paul Weir
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Philly's Busy Summer Created Momentum. Can The City Turn It Into Long-Term Growth?

Where Capital Meets Opportunity: Navigating The Next Wave Of CRE Financing At Bisnow’s Event On Sept. 30

Discussing Strategic Capital Stack Structuring At Bisnow's Sept. 30 National Finance Event

Bally's Lines Up $560M Loan For Bronx Casino: The N.Y. Deal Sheet

Data Center Spills 5,000 Gallons Of Fuel Into New Jersey River

Historic Brooklyn Hotel To Be Turned Into Ritz-Carlton-Branded Condos

Downtown Atlanta Improvement Group Picks Food Bank Chief As Next Leader

Trump's DEI Crackdown Is Creating New Risks For Landlords That Lease To The Government

Taconic Partners Sheds Another NYC Life Sciences Property

Oxford Properties' U.S. Investment Head On Why It's Buying Office Again — And Where

Brandon Johnson Seeks Second Term Amid Strained CRE Relationship

25 Years After 9/11, Lower Manhattan Is Finally Firing On All Cylinders