Weak hiring leads firms to lease less space

http://www.crainsnewyork.com/article/20100713/REAL_ESTATE/100719961 Real estate advisory firm finds that rise leasing activity is due to companies seeking smaller, more reasonably priced office space. Although office leasing activity has increased in the second quarter, a sluggish economy and lack of employment growth have caused firms to lease less space, according to a report released Monday by... [more]

http://www.crainsnewyork.com/article/20100713/REAL_ESTATE/100719961 Real estate advisory firm finds that rise leasing activity is due to companies seeking smaller, more reasonably priced office space. Although office leasing activity has increased in the second quarter, a sluggish economy and lack of employment growth have caused firms to lease less space, according to a report released Monday by CresaPartners. According to the real estate advisory firm's second quarter Manhattan Tenant Guide, traditional office-using industries are not adding jobs rapidly enough: financial services employment remains 5,100 jobs below its year-ago level, and the professional and business services sector continues to struggle, falling short of last year's level by 2,100 jobs. These job losses have resulted in the elimination of more than 20 million square feet of office space demand. "We're starting to see that the jobs aren't coming back, and offices are learning to downsize and develop the spaces they move into," said CresaPartners executive vice president Robert Stella. "A lot of firms are being very cautious." [less]