New York City offices get with the times, and why you need to follow the energy sector
Jun 13, 2014
Here are the news stories you might have missed this week:
The New York Times: A tug-of-war of tax breaks tightens across the Hudson
New York and New Jersey are battling over the country’s biggest multibillion-dollar companies, using subsidies as ammunition. New Jersey Governor Chris Christie awarded more than $4 billion in tax breaks and credits to major corporations in an effort to keep them (and their jobs) in the state. Meanwhile, Governor Cuomo of New York is brokering his own subsidy deals. The latest player is BNY Mellon, which is planning to sell its Wall Street headquarters and move to the state that can cut it the best deal. Continue reading at NYTimes.com
Credit Union Times: Commercial real estate steady: Fed
According to the Federal Reserve’s June 4 Beige Book, commercial real estate activity in most of the 12 Federal Reserve Districts has remained steady to strong throughout 2014. Although high property prices in Boston discouraged some investors, Atlanta and Chicago reported increased demand for leased buildings. Cities in the St. Louis district also saw an increase in downtown development, and the Kansas City district noted a decline in commercial real estate vacancies. Click over to CUTimes.com for more information about this trend.
Commercial Observer: The changing face of office space: NYC real estate adjusts to the times
Nontraditional office spaces are becoming the norm as New York City startups are ditching filing cabinets and cubicles in favor of laptops and communal desks. Although the average workstation size has dropped from 250 to 135 square feet per employee, New York City’s Economic Development Corporation estimates that by 2025, companies, especially in the technology sector, will demand 6.1 million more square feet of Class B and Class C space than the market can provide. But in a drive to keep pace with demand, owners and brokers are gobbling up old buildings in outer-borough neighborhoods and transforming them into collaborative workspaces. Learn more at CommercialObserver.com.
GlobeSt.com: Energy, jobs loom largest at CRE issues
The Counselors of Real Estate published its annual Top Ten Issues Affecting Real Estate list this week, and America’s growing energy independence came in at number one. While the growth of the energy sector could lead to increased opportunities in the multifamily, service, and manufacturing sectors, other categories, like the office market, could suffer as employers scale back on per-employee space requirements. Other issues on the list include jobs, millennials, healthcare, and water supply. Visit GlobeSt.com to read more.
Posted by: Raymond T. Cirz