It's concessions season as rental market flags.While sales prices are peaking for Class A properties, the light rental market means good news for the prospective tenant: It's concession season. "This is probably one of the best tenant markets in the past 10 years," said Noel Flagg, a broker with Newmark & Co. "Our market runs side-by-side with employment statistics. If people are not hiring, that means they are not committing for additional space." The rent spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. of three years ago, prior to 9/11, is no more. The rent spike of three years ago, prior to 9/11, is no more. With high vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rates, landlords are taking widespread measures to fill space. Rents, Flagg added, have decreased about 25 percent from their peak approximately three years ago, while landlord concessions have increased approximately 50 percent. On Park Avenue, rents that were in the $70 per s/f range three years ago are a distant memory. "Today, in many cases, those same rents are $50," Flagg said. "And instead of only getting four to six months free rent, tenants are getting 10-12 months free." Building allowances are also increasing. The same $50 per s/f rent typically includes a $50 per s/f allowance to help build space, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Flagg. "Three years ago," he added, "a $70 rent would still only net a $35 allowance to build. It is 50% greater. You are able to achieve unique things. A landlord is prepared to invest space in that building before they give it to you." Flagg said he recently has been involved in transactions in which landlords have demolished de·mol·ish tr.v. de·mol·ished, de·mol·ish·ing, de·mol·ish·es 1. To tear down completely; raze. 2. To do away with completely; put an end to. 3. unwanted sections of buildings. In the past, they would have told him, "Look, you're responsible for demolishing the space," he said. Mark Weiss, a principal at Newmark, recently arranged a 51,000 s/f lease at 866 UN Plaza for Fross Zelnick Lehrman & Zissu, a premier trademark law firm. The owners, Vornado Realty Trust Vornado Realty Trust (NYSE: VNO) is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's. , agreed to several concessions--among "one of many" being a new air conditioner conditioner, n 1. an additive substance used to increase the effectiveness of another substance. 2. a substance added to enamel that improves a sealant's ability to adhere. , Weiss said, in return for the 10-year deal. "The concessions were appropriate for a deal of that size, given the real estate (rental) market in Midtown mid·town n. A central portion of a city, between uptown and downtown. midtown Noun US & Canad the centre of a town ," Weiss said. "Vornado was very responsive to the client's needs." Flagg cited a deal in which he co-represented apparel maker Warnaco in their lease of 160,000 s/f of office space in an 18-story tower at 501 Seventh Ave. The landlord, Wien and Maikin Properties, allowed Warnaco to use the courtyard For alternative meanings of the word "court", see: Court (disambiguation). A court or courtyard is an enclosed area, often a space enclosed by a building that is open to the sky. to place an air-conditioner and even paid for the unit to be built for the tenant. |
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