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Wednesday, 25 March 2020

Manhattan's Slowing Office Leasing Market to Get Further Hit by Virus

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Commercial Real Estate Direct Staff Report

The Manhattan office leasing market, which already had been hampered by a surge in new inventory, could get clobbered by the coronavirus outbreak.

New leasing activity for the first two months of this year had decreased by 37.6 percent to 4.1 million square feet compared with the same period last year, according to Cushman & Wakefield. And that was before Covid-19 became a household term.

"The idea of somebody right now executing a lease and putting up a significant amount of security deposit, that's hard to imagine," said Sean Black, co-founder and chief executive of BLACKre, a tenant representative.

"This is unprecedented," he said regarding the impact the coronavirus outbreak has had on real estate and the broader economy. "Everyone is being touched. It's not just a particular sector. It is the entire economy."

Black, who previously was a leasing broker at Grubb & Ellis, JLL, Cushman & Wakefield and NKF, expects to see property owners offer lower rents this year to attract and retain tenants. Their largest expenses typically are payroll and real estate, so they'll likely look to cut back on...


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Office
  • Subject: Leases (LSE), Research (RES)
  • Company: Cushman & Wakefield
  • Private: Yes
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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