Real Estate

Pryor Cashman Partner Bradley Kaufman, a member of the Real Estate Group and co-chair of the Leasing Practice, is a contributor to a Reuters Practical Law: The Journal article.

In “Commercial Real Estate: Trends and Predictions,” Reuters “asked leading real estate practitioners to share their thoughts on recent developments impacting the US commercial real estate market.” Brad weighed in on a range of topics, including the impacts of higher interest rates, how hybrid work has changed commercial leasing, and how the economy is affecting lease negotiations.

On post-COVID changes to office layouts, Brad says:

Typical office layouts have changed in several ways. In office leasing, there has been a consistent, if subtle, move towards more hoteling (meaning reservation-based use of unassigned workspaces). There has also been a move away from “frivolous” amenities, such as ping pong and pool tables, to more “serious” amenities, such as better food services and user-friendly workspaces. Owners certainly have noticed this trend and are seeking to provide better personal (to the particular tenant) or common area amenities.

On the topic of how economic factors are impacting negotiations over leases, Brad says:

Some negotiations are slowing down as both landlords and tenants remain cautious. Conversely, certain desirable spaces, particularly in retail, have attracted higher-end tenants that are prepared to pay top rents, and have even created bidding wars that have expedited negotiations, sometimes extremely so. And yes, exit strategies have become critical to tenants and have caused landlords to grant them more cautiously.

Read the full article using the link below (registration is required).