Large Manhattan office tenants looking to leave current homes

New York Post - Mar 30th, 2025
Open on New York Post

Large corporate tenants like Havas and 2 Sigma are seeking new office spaces as they plan to downsize their current locations. Havas, currently at 200 Hudson St., is evaluating opportunities for a space of about 350,000 square feet, while 2 Sigma, which occupies 500,000 square feet across two buildings, is looking to consolidate into a 350,000-400,000 square foot space in midtown or midtown south. AMC Networks is also searching for a 200,000 square foot location. Meanwhile, Nomura Holdings is considering relocating to Vornado’s Penn 2, potentially leaving behind part of its 900,000 square feet at Worldwide Plaza. This shift in office space demand is impacting landlords like SL Green and RXR, who face challenges in filling vacancies.

The trend of corporate downsizing and relocation highlights a broader market shift. Leasing activities have slowed down since a surge earlier in the year, though medium-sized deals continue. This evolution in the office space market is prompting landlords to innovate, such as AmTrust RE's plans to upgrade 360 Lexington Ave. to attract high-end tenants. Additionally, the Roosevelt Hotel, used as a homeless shelter under a city lease, will close, affecting 96 employees and marking the end of a $220 million lease arrangement, paving the way for its sale. These developments reflect ongoing changes in commercial real estate dynamics, influenced by corporate consolidation and evolving tenant needs.

Story submitted by Fairstory

RATING

5.4
Moderately Fair
Read with skepticism

The article provides a timely and relevant overview of potential moves by large office tenants in Manhattan, reflecting broader trends in the real estate market. While it presents clear and concise information, the reliance on unnamed sources and lack of direct confirmations from involved parties raise questions about accuracy and source quality. The story's narrow focus on corporate actions without exploring broader implications results in an imbalanced presentation. Enhancing transparency and including a wider range of perspectives could improve the story's overall quality. Despite these limitations, the article remains relevant to readers interested in real estate and economic trends, though it could benefit from deeper analysis and engagement strategies to broaden its appeal.

RATING DETAILS

6
Accuracy

The news story presents several claims about large office tenants in Manhattan, such as Havas downsizing, 2 Sigma consolidating, and AMC Networks relocating. While these claims are specific, they lack direct confirmation from the parties involved. For instance, the article mentions that Havas is looking for 350,000 square feet, but this is based on unnamed sources. Similarly, the information about 2 Sigma's consolidation is attributed to the rumor mill without direct quotes from the company or its representatives. These elements require further verification to ensure factual accuracy. Additionally, the claim about the Roosevelt Hotel closing is supported by a notice on the state's Department of Labor WARN site, providing a more solid basis for this particular fact.

5
Balance

The article primarily focuses on the potential moves of large office tenants, presenting a single perspective centered on corporate real estate activities. It lacks a broader view that might include the perspectives of employees affected by these moves or the impact on local communities and economies. The story could be more balanced by including viewpoints from tenant representatives, real estate analysts, or local business owners who might be impacted by these relocations. This narrow focus on corporate actions without exploring broader implications or stakeholder perspectives results in an imbalanced presentation.

7
Clarity

The article is generally clear in its presentation, with a logical flow of information about various tenants and their potential moves. The language is straightforward, making it accessible to readers with a basic understanding of real estate dynamics. However, the piece could improve clarity by organizing the information more effectively, perhaps by grouping related claims or providing subheadings for different sections. The current structure, while coherent, could be enhanced to guide readers more smoothly through the various points discussed.

4
Source quality

The article references sources such as unnamed insiders and a statement from Newmark's tristate president, David A. Falk. However, the reliance on unnamed sources for key claims about tenant moves reduces the reliability of the information. The lack of direct quotes from involved parties like Havas, 2 Sigma, or AMC Networks further diminishes source credibility. The article could benefit from a more diverse range of authoritative sources, including direct confirmations from the companies involved or expert commentary from real estate analysts.

5
Transparency

The article provides limited transparency regarding the basis for its claims. While it mentions sources and a response from a real estate executive, it does not clearly disclose the methodology for gathering information or the potential conflicts of interest that might affect the reporting. The lack of transparency about how the information was obtained and the absence of detailed attribution for unnamed sources leave readers without a clear understanding of how the conclusions were reached. Greater disclosure of the reporting process and source reliability would enhance transparency.

Sources

  1. https://commercialobserver.com/2024/11/manhattan-office-leases-expiring-2025-2026-2027/
  2. https://harveyorganblog.com/2025/03/14/march-14-assault-on-3000-gold-begins-gold-closed-up-9-75-to-2990-10-while-silver-also-had-a-good-day-closing-up-0-04-to-33-77-platinum-closed-up-5-50-to-998-35-with-palladium-closing-up-9/
  3. https://www.costar.com/article/276707372/empire-state-realty-adds-to-growing-signs-of-new-yorks-recovering-office-market
  4. http://acecomments.mu.nu/?post=360895http%3A%2F%2Facecomments.mu.nu%2F%3Fpost%3D360895
  5. https://newyorkoffices.com/record-office-vacancy-rates-in-2025-signs-of-change-and-a-new-normal/