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Tenants Are Much More Savvy'

NEW YORK CITY--CTRR's Marisa Manley says building owners have become more receptive to tenants' high-level requirements, even if meeting them is not easy

By Paul Bubny | Updated on January 15, 2010

NEW YORK CITY—If 2008 was the year in which the last vestiges of the 2005-2007 peak were swept away by the post-Lehman meltdown, 2009 offered clear evidence of how much the market had diminished from that peak. For office tenants, however, once they had determined the long-term prospects for their businesses, it was a time to start taking advantage of the new degree of leeway they had in negotiating for space. As Marisa Manley, president of tenant-rep firm Commercial Tenant Real Estate Representation, points out, that greater control shows up in a variety of ways. It may be law firm Orrick, Herrington & Sutcliffe getting a great deal in a relocation to 51 W. 52nd St., or a tenant demanding—and getting—a higher level of service from the building owner.

GlobeSt.com: Talk about what the market looked like this past year from a tenant rep firm’s perspective.

Manley: The big story in real estate for 2009 was job losses. There have been about 140,000 jobs lost in New York City. If we use the standard rule of thumb of 200 square feet per person, that translate into about 28 million square feet of space. That adds 7% to the vacancy rate by itself, even before we talk about gray space and companies not laying people off but deciding they don’t need to have all of them in New York.

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