Commercial real estate in the state of NYC

Commercial real estate in New York City struggled before the pandemic. Now companies are getting creative trying to make a comeback.

NEW YORK – Commercial real estate in New York City is dead like never before.

After sitting empty for nearly two years, Barneys comes back to life – well, kind of – as the room becomes a ghost Halloween. While Saks Fifth Avenue will invest twice as long – as retailer WeWork will offer office space in a partnership called "SaksWorks".

"The Spirit Halloween stores are a great idea because they show up and be there for two or three months and then they're gone," says Barbara Denham, senior economist at Oxford Economics. "But I know from the neighborhood … they're kind of, you know, not quite the seal of approval that Barneys is."

The Spirit Halloween pop-ups are doing very well and helping the economy, according to Denham, and the move away from the stationary model has been inevitable.

"The entire retail sector was struggling before the Covid outbreak, the shift to e-commerce was a build and build and build. And then of course it accelerated during the pandemic – so many people were buying clothes, everything, even groceries online. It was a kick while the pandemic hit retailers. So many stores closed in 2019 and early 2020. So that was really almost the nail in the coffin, the retail trade is still very positive. "

As for SaksWorks, Denham calls the partnership a "home run".

"It's a win-win situation. The demand for temporary flexible office space is huge. A lot of businesses, small businesses – smaller than about 5,000 square feet, 10,000 square feet – want to drop the lease."

"If the past year has taught us anything, it is the value of connection. SaksWorks brings people together by providing stylish and flexible spaces for living, wellness and work, all under one roof," said Amy Nelson, president of SaksWorks, as they from FOX. was contacted 5 for comment. "I'm excited to lead the SaksWorks team and share this new concept that brings work and life together in a whole new way."

Denham also believes the real estate sector will rebound while the Delta variant may have slowed the rush back to the office.

"Lots of people want to go back to work. You want to work in an office. You want to be with your peers, especially young people, "says Denham." And, you know, there are productivity gains when you work from home, but there are many productivity gains when you work with your co-workers on site as well see them regularly. "

Hudson's Bay Company, which owns Saks, plans to open its first five coworking offices in the NYC area next month, according to the Wall Street Journal.

source https://seapointrealtors.com/2021/08/12/businesses-getting-creative-as-nyc-commercial-real-estate-tries-to-rebound/

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