Officebroker.com is rebranding as Officio to move away from the broker model and aid clients in finding long-term solutions, rather than completing short-term goals.
Manhattan’s boutique office building sales are thriving
The Manhattan boutique office market grew about 5,000 to 10,000 square feet across seven office buildings in the last quarter of 2018
In 2018, Midtown had 25 boutique offices change hands and of those, nine were purchased for office investment purposes.
In central Midtown, an 87,000 square foot office building was sold for $809 per square feet. In November, DLT Entertainment sold their 7,616 square foot headquarters. The buyer was unknown and is expected to turn it into a personal residential area.
The six transactions in 2018 totaled 238,785 square feet and $206.96 million in dollar volume compared to the five transactions of the previous year, which amounted to 119,492 square feet.
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The five boutique office buildings recorded downtown in 2018 amounted to $195.87 million in volume, a 52% increase from 2017.
Coworking companies fought hard as they absorbed record amounts of office space in 2018 and quickly become one of the biggest occupiers of boutique office spaces. In August, the We Company became the largest office space occupier in the city with 5.3 million square feet.
Interest rates are expected to rise in 2019, which could cause a rise in transactions as investors sell assets in their portfolio in order to purchase more valuable core assets.
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JLL research revealed that Dallas-Fort Worth is ranked 12th out of the country’s top 15 coworking and flexible space markets, taking up 3 million square feet of space.
Office provider LABS has launched its 96,100 square foot flagship property LABS House in Bloomsbury, London that features coworking, offices, and full-service dining.
Cool office interiors are ideal at first glance, but looking into a company’s principles, such as gender equality and flexibility, will be the factors that retain talent.
Colliers International revealed the success of the office market last year due to high demand for coworking and tech firms, but predictions for 2019 are uncertain.
Shared office space providers as tenants have become the norm for many landlords and building owners, and now many REITs have adopted coworking as it continues to expand.
Brookfield Properties has teamed up with Convene to spruce up the 73,000 square foot Brookfield Place into a full-service events venue that accommodates up to 500 people.
Many coworking operators pride themselves on massive, rampant expansion, but some industry experts believe this growth could lead to failure and consolidation in 2019.