Times Square Office Buildings Will Be Challenged by New Office Space, Tenant Exodus and Negative Per
February 22, 2016In Addition, Professionals Hedge on Whether Hudson Yards Will Succeed – but Think It Will Have Greater Positive Long-Term Impact than World Trade Center and Other Mega-Projects
(NEW YORK, NY-- Feb. 22, 2016) - Expect turbulence for Times Square commercial real estate. With new office space opening in the neighborhood and some big existing tenants moving out, two-thirds of real estate executives (67 percent) say it will be a challenge to bring new tenants there.
That’s according to accounting firm Marks Paneth’s latest Gotham Commercial Real Estate Monitor, a recently completed survey of over 100 New York commercial property owners, brokers, agents, engineers, accountants and lawyers specializing in the commercial space.
The real estate community seems to believe that as more Times Square commercial real estate becomes available, tenants will be reluctant to move there – largely because of the perception that the neighborhood is chaotic and overrun with tourists,” says William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
Looking elsewhere on the West Side, the giant Hudson Yards project draws mixed reviews. Just under half (49 percent) of the property executives say it’s too soon to tell whether the project will be a success. Thirty-seven percent think it will be, and 12 percent say it has challenges.
But the executives were most likely to choose Hudson Yards as the New York City mega-project that will have the most positive long-term impact on real estate values in its neighborhood – 46 percent picked it, compared with 25 percent who picked the Second Avenue Subway and 23 percent who named the Long Island Rail Road at Grand Central. Only 6 percent chose the World Trade Center site.
To receive a copy of the Gotham Commercial Real Estate Monitor and/or to speak with a leader from Marks Paneth’s Real Estate Group, please contact John McKenna of ICR LLC at 203.682.8252 or john.mckenna@icrinc.com.
About Marks Paneth
Marks Paneth LLP is an accounting firm with more than 600 people, including over 80 partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, trade remediation and valuation services as well as litigation and financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, hospitality, media, entertainment, nonprofit and government services clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle. The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services.
In addition, Marks Paneth’s membership in Morison KSi Ltd., a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth, whose origins date back to 1907, is the 35th largest accounting firm in the nation and the 9th largest in the mid-Atlantic region. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top three forensic accounting firms for the fifth year in a row.
Marks Paneth is headquartered in New York City, with additional offices in Washington, DC, New Jersey, Long Island and Westchester. For more information, please visit markspaneth.com.
