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Situation Overview
Our Team
About Newmark
Technology & Innovation Practice Group
Services
Flex
Closing
Home
TIPG
Flex Solutions
Thomson Reuters
@ThomsonReuters 31.2K subscribers
#WorkingAtTR
Andrew Sachs
Ben Shapiro
Elizabeth Hart
John Cilmi
Vice Chairman
Associate Director
Full biography at nmrk.com
Core Resources
Financial Services
Romel Cañete
Executive Managing Director
Jonathan Mazur
Market Research
Senior Vice President Northeast Region Lead
Tamar Moy
Workplace Strategy
Senior Vice President
Matt Duthie
Property Management
Vice President
Monique Rafferty
Marketing & Business Development
3.1B
1 T
6,700
12.1%
8.9%
28%
Annual Revenue
Transaction Volume
Professionals
Increase in Leasing YOY (Q3 YTD)
Increase in Investment Sales YOY (Q3 YTD)
Of NMRK shares owned by Newmark Professionals
By the Numbers
What's New at Newmark?
– – – – –
Global Footprint
Commenced Newmark direct business expansion into EMEA and APAC (Oct ’21) Announced new Newmark operations in Poland and Hungary (Jan ’22) Secured new APAC operating teams, to be announced (Mar ’22) Acquired premier London Capital Markets and Leasing Real Estate Advisory firm, BH2 Expanded into Israel with partnership with Newmark NatAm Q2 2022
– – –
Acquired Knotel through bankruptcy court proceedings, launching flex product Acquired Deskeo, largest French flex operator, expanding across EU, 3Q21 Launched Optality, portfolio and flex optimization solution, 4Q21
Innovation
–
In the past two months, awarded seven exclusive North American or Global accounts representing over 75 millions square feet of commercial space
Corporate Services
Our Integrated Platform
Capital Markets
Valuation & Advisory
Landlord Representation
Retail Services
Industrial Services
Facilities Management
Program & Project Mgmt.
Technology & Innovation
Global Strategy
Lease Administration & Audit Services
Brokerate & Transaction Mgmt.
Newmark & Global Corporate Services
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Connected community of real estate experts dedicated to providing customized solutions to the technology industry.
Technology & Innovation Practice Group (TIPG)
– Portfolio balance of fixed/flex – Industry benchmarking – Contract negotiation – Hybrid work platforms
FLEX VS FIXED ASSESSMENT
– Creating scaling efficiency – Buying power – Flexibility
LL OPTIMIZATION ANALYSIS
– Mid Year Lease Review – Conflict Review
Peer Reviews
Subject Expertise: Sustainability, Change Management, Facilities Management Location Expertise: San Francisco, New York, Los Angeles, Denver
THOUGHT LEADERSHIP SERIES
– Own / Lease assessment – Development consulting
Monetization Strategy
– Competitor Benchmarking – Tech Building Index (“TBI”) – Funding Round Analysis
Data Aggregation
Deep understanding of local real estate, including Availability Rate, Vacancy And Trends
LOCAL MARKET EXPERTISE
Global Corporate Services (GCS)
– Strategic nimble end-to-end Portfolio Optimization – Seamless service delivery
GCS
– Programming & People Playbooks – Hybrid Office Implementation – Change Management
– Talent Comparison By City – Web Based Technology Tools To Inform Mutli-City Strategy – Economic Incentives – Market Mover Growth By City
INCENTIVES / LOCATION STRATEGY
– – – –
ESG
Serve as the stewards of our clients’ business objectives ensuring all disciplines, stakeholders, consultants & contractors are working together seamlessly with adherence to time & budget restrictions help clients achieve project transparency, cost savings & more productive work environments.
Program & Project Management
Unlock efficiencies & cost savings through vendor consolidation & performance management, operational improvements, expense baselining & organizational design drive down operating costs without compromising building integrity or tenant satisfaction.
Creating strategies necessary to integrate sustainability across all service domains Drive standardized procedures by using data to analyze key performance indicators Provide solutions for improved energy efficiency Alternative energy options, transportation options, water conservation & discharge reduction, waste management practices, measurement & verification & procurement practices
TIPG (Technology & Innovation Practice Group)
Sample Tech Client List
Single-Tenant Debt
3 Times Square
Global Properties / Facilities
New York City Market Overview
Manhattan Office Market: Trends
Mixed economic signals remain. Inflation increases have moderated, but potential cracks are forming in labor markets.
New York City building occupancy rates jumped after Labor Day Weekend. Employees favor Tuesdays and Wednesdays with in-office rates reaching 57.5%.
Quarterly leasing was the highest since the start of the pandemic at 9.9 MSF, driven by large deals across all three major markets.
Tenants continued to flock to quality buildings, particularly new construction.
Flight to quality transactions drove increases in taking and net effective rents across Manhattan.
Increases in work allowance tapered off in Midtown but continued a steady upward pace in Midtown South and Downtown.
Despite questions of impact from hybrid work models, most tenants that signed large and midsized deals in 3Q22 expanded.
Finance tenants drove absorption in the third quarter. TAMI tenants have pulled back on leasing and driven increases in sublease availability.
Absorption posted positive for the first time in twelve quarters, closing at positive 2.5 MSF.
Manhattan Office Market: Observations
Highest Office Occupancy
since pre-Covid; increased office attendance (47.8% in Oct. 22)
Most Office Leasing Activity
in 3Q22 since pre-Covid; 10.2M SF leased (2Q22 – 7.9M SF)
Tale of Two Cities
Leasing activity in premium properties and locations remains strong vs. commodity-type space which is weak with limited signs of near-term rebound
Amenity and Outdoor Spaces
are being created in many buildings and are resulting in improved leasing activity
Increased Concessions
(free rent and cash contribution) are being offered to attract tenants and support base rents
Workplace Strategy Evolution
attract and retain talent, engagement in the office, hospitality, collaboration, productivity, brand/culture
Midtown / Midtown South: Noteworthy Activity
IBM (328K) and Franklin Templeton (347K) leased a combined 675,000 SF at 1 Madison Avenue, bringing the redevelopment to 55.0% leased. KPMG, Clifford Chance and D.E. Shaw leased 914,000 SF at 2 Manhattan West. KPMG is decreasing their footprint by 43.0% on the move to new construction, leaving behind blocks at 345 Park Avenue, 560 Lexington Avenue and 1350 Avenue of the Americas. O’Melveny & Myers vacating 160,000 RSF at 7 Times Square. Additional 80,000 RSF from their subtenants to potentially become available. Ann Taylor reduced its footprint from 250,000 RSF to 150,000 RSF. Macquarie Group and Viking Global Investors leased 360,000 SF at the newly redeveloped 660 Fifth Avenue. Macquarie will be vacating 262,000 SF at 125 West 55th Street.
Facebook announced they will be closing their office at 225-233 Park Avenue South, which could bring 305,000 SF to the market as soon as 2024. 520,000 RSF block of availability coming online at 1290 Avenue of the Americas (AXA, Sirius, Morgan Stanley). 21st Century Fox is set to explore the market for 800,000 RSF out of 1211 Avenue of the Americas. HSBC will be vacating 548,000 SF at 452 Fifth Avenue as they consolidate and relocate to 66 Hudson Boulevard. Two Sigma has yet to sign a deal with an upcoming LXD at 100 & 101 Avenue of the Americas.
Landlord Floor/Area Asking Rent Possession Comments
Brookfield Properties Entire 17th Floor: 30,842 RSF Entire 18th Floor: 30,820 RSF Total: 63,000 RSF $58.00 / SF Immediate Sublease from Liquidnet through February of 2034 E17: 66 adjustable workstations, 16 single-person offices, 4 two-person offices, 9 conferences (1 twenty-person, 1 fourteen-person, 7 huddle), kitchen/lounge E18: 136 workstations, 15 offices, 3 huddle rooms, 3 conference rooms (1 six-person, 1 eight-person, 1 twelve-person), storage, copy rooms, pantry
SJP Properties Entire 12th Floor: 26,796 RSF Entire 14th Floor: 36,777 RSF Total: 53,575 RSF $62.00 / SF Immediate Sublease from E Marketer through September of 2025 E12: 6 conference / huddle rooms, 3 phone rooms, 116 workstations, cafeteria with lounge seating, and terrace. Furniture can be made available. E14: 1 boardroom, 8 conference / huddle rooms, 8 phone rooms, 112 workstations, lounge seating, pantry, reception, and full sound studio
David Werner Real Estate Entire 30th Floor: 30,842 RSF Entire 18th Floor: 30,820 RSF Total: 61,662 RSF TBD July 2023 Off-market sublease from Roku Term length and pricing structure is TBD
The Durst Organization Entire 14th Floor: 41,221 RSF Entire 15th Floor: 41,221 RSF Total: 82,442 RSF $88.00 / SF Immediate Sublease from Roivant through October of 2032 E14: 223 open positions, 14 offices, 3 additional offices/breakout rooms and 7 conference rooms (various sizes) E15: 227 open positions, 6 offices, 11 additional offices/breakout rooms and 5 conference rooms (various sizes) Large cafe on each floor Internal staircase
620 Eighth Avenue Between 40th and 41st Streets
11 Times Square Between 41st and 42nd Streets
5 Times Square Between 41st and 42nd Streets
151 West 42nd Street Broadway btwn 42nd and 43rd
TimeS Square Select Sublease Availabilities
Break-Even Analysis
Owner: Lender: Total Loan Amount: Interest Rate: Date Refinanced: Amortization Type: Total Building Area: Annual Payment: Debt PSF: Debt Service PSF: Operating Expenses: Taxes: Break Even Number:
Rudin Management Company JPMorgan Chase Bank, Bank of America, M&T Bank $415,000,000 5.14% 6/10/22 Floating Rate 954,993 SF $21,331,000 $434.56 $22.34 $17.68 $0.37 $40.38
Anchin recently signed its lease on the 24th and 25th floors of the building. They will relocate their NYC operations from 1375 Broadway. Remy Cointreau rumored to have interest in the property. TuoroCollege signed a lease at the building for 250,000 RSF on floors 2-9 and partial ground (private entrance). Kind Snacks renewed its existing lease on the 12th floor of the property.
• • • •
Building Notes
Occupancy:
LXD:
Escalated Rent:
Entire 17th-19th (99,853 RSF)
1Q 2023
High $60's PSF
Current Situation
Comments
• Vacancy rate is 79.8% • Interest rate is estimated floating rate • Loan maturity is 6/10/2025 with 2 one year extension options • OpEx is estimated but includes ground rent of $3.40 PSF(2016 most recent) • Property has a tax exemption (NYC Econ Dev Corp), with the benefit amount being $188,000,000 • Break even number does not include concessions, free rent, commissions, etc.
610 Opperman Drive Eagen, Minnesota United States
2395 Midway Road Carrollton, Texas United States
Paseo de la Reforma 26 Mexico City Mexico
6300 Interfirst Drive Ann Arbor, Michigan United States
333 Bay Street Toronto, Ontario Canada
3 Times Square New York, NY United States
5 Canada Square London United Kingdom
Landis & Gyr 3 Zug Switzerland
Facility
610 Opperman Drive, Eagen, Minnesota United States
6300 Interfirst Drive, Ann Arbor, Michigan United States
90,280 SF
Approximate Size
409,150 SF
2,792,000 SF
247,250 SF
59,250 SF*
*Represents net occupied area. Main lease is for 81,250 SF, with 22,000 SF subleased to Refinitiv.
99,850 SF
133,400 SF*
50,250 SF
Owned
Leased
Thomson Reuters shared services center
Principal Use
Tax & Accounting Professionals and Corporates headquarters and operating facilities
Legal Professionals headquarters and Global Print operating facilities
Tax & Accounting Professionals operating facility
Thomson Reuters headquarters and Legal Professionals operating facilities
Corporates and Reuters News operating facility
Legal Professionals, Tax & Accounting Professionals and Reuters News operating facility
Enterprise Centre
*The landlord (3XSQ Associates) is an entity owned by one of Thomson Reuters' subsidiaries and Rudin Times Square Associates LLC. 3XSQ Associates was formed to build and operate this property.
*The primary lease (which covers approximately 353,000 SF) is held by Refinitiv. Approximately 133,400 SF is being utilized from Refinitiv.
Subleased
Owned/Leased*
Owned/Leased
Properties and Facilities
(as of December 31, 2021)
Click a location to view details about that property.
800 Corporate Pointe Culver City, CA United States
311 S Wacker Dr Chicago, IL United States
Located at 800 Corporate Pointe, in the Culver City submarket (though not true Culver City). Has been in the building since 2011 and are not in the market. Occupies just under 30,000 SF.
Notes
Located at 311 S Wacker Dr. Has been in the building for approximately 30 years and has not indicated that they plan to give up any space. Occupies approximately 18,000 SF. Recent comps for the building are mid $20's PSF net ($25-$28 PSF).
Additional Notes
This is a single-tenant facility with a significant amount of space, and they have been in the building since the early 90's. Possible SLB scenario based on what their objectives are on the balance sheet, potentially time for an upgrade.
Facility Overview
Video Overview
120 Bremner Blvd.
Other Facilities in Toronto
• Located in South Core • Landlord is QuadReal • Lease began February 2017, expiry 2027 • Occupies 50,000 SF
• Located in Downtown West • Landlord is Allied REIT/Westbank • Mixed office and high-rise residential • Lease commitment announced 10/2017 - Lease commencement Q1 2023 - Expiry 2033 - Will occupy 60,000 SF
19 Duncan St. (building in development)
• Located in Toronto East (Scarborough) • Landlord is Landa Global Properties • Managed by Triovest • Lease began June 2014 - Extended for 5 years in June 2019 - Expiry October 2024 - Occupies 34,000 SF - Currently on sublet market with Colliers
2075 Kennedy Rd.
Multiple Properties Washington DC Area United States
1333 H St NW, Washington DC – Occupies approximately 10,000 SF on the 5th Floor – MRP is the property manager 1410 Spring Hill Rd, McLean VA – Occupies approximately 35,000 SF on the 1st, 4th, and 6th Floors – 1st and 4th Floor suites have lease expiry of 3/2025 – 6th Floor has lease expiry of 11/2027 – Represented by Colliers
We are a connected community of real estate experts dedicated to providing customized solutions. We transform untapped potential into limitless opportunities.
At Newmark, our mission drives each decision, strategic or tactical, and has a scope beyond our professionals, clients, and partners. The possibilities extend to our industry and our business community as a whole. We strive to transform untapped potential into limitless opportunities! We live this each and every day. Newmark as a platform allows individuals to make a difference and exponentially expand the impact throughout the professional entrepreneurial network. In each meeting, office, and market, our specialists are leading by example and helping others. Newmark’s Technology & Innovation Practice Group (TIPG) is led by Elizabeth Hart and Ben Shapiro along with other national tech leaders. Their passion and understanding of tech industries’ real estate and business needs are magnified throughout the country’s top tech markets to bring creative solutions and the highest level of service. TIPG prioritizes inclusion, diversity, and equity as a foundation for each client-specific placement strategy. We want different points of view influencing our decisions. Extra perspectives create better results.
What Drives Us
Where others divide and conquer, we put our heads together. We collaborate to compete, solving problems creatively.
Join Forces
When things change, we're ready to pivot and adapt. We make smart, sound decisions, and we make them first.
Stay Nimble
Every choice we make is by people and about people. We arm outselves with the best information, and we act in the best interests of our clients and our team.
Be Human
We're more concerned with what's next than what's now. Never content to rest on our laurels, we're always thinking about fresh challenges and future opportunities.
Face Forward
TIPG combines each member’s well-established market intelligence and strong relationships across the industry to streamline and strengthen a wide range of real estate solutions for our clients. Who requires an innovative and collaborative approach focused on technology and solutions. The Technology & Innovation Practice Group allows Newmark to apply its expertise to complement the next-generation workplace, cultivating a variety of best practices to advance the tech industry’s ethos across the globe.
At Newmark, we don’t just adapt to what our partners need— we adapt to what the future demands.
Hear from Our People
It is time for leaders in the real estate community to think differently. By working as a nationally connected team constantly iterating on how to improve results, the client's needs are put first and the process consistent across markets. Commercial real estate is evolving, and we are joining forces to promote that change and embrace what's next within our Technology & Innovation Practice Group at Newmark.
As the brokerage industry continues to consolidate and evolve, occupiers will bias toward transaction managers that have the ability to perform with consistent service on a multi-market basis. TIPG's one team, one platform approach across 14 cities in North America allow for occupiers to benefit from a best-in-class approach, the SAME approach in multiple markets. No more learning curve from city to city.
Real-time information pertaining to trends, benchmarks and decision-making are critical needs of our clients today, more so than ever. Our practice group has accelerated the process of assembling and disseminating real-time data and information so our multi-market clients can be ahead of the curve when it comes to planning and making informed decisions.
Eric Cagner
Connectivity & Coverage
We are C O N N E C T I V I T Y via a National Team Approach
Tech Connect Quarterly Newsletter
We publish a newsletter highlighting recent work powered by TIPG, bringing the best of tech and real estate research—news, interviews, trends, and more.
Demo Video: Tech Index / Tech TIMs
Why Flex, why now?
Why Newmark for Flex?
Speed to Market Access space instantly in one or multiple markets Capital Savings Reduce upfront capex spend Spatial Efficiency Space that evolves with headcount and usage Reduce Long Term Liabilities Flexible term length options Branded Design standards incorporation and white label space available
Most flex deals are not negotiated properly. Newmark offers brokers with expertise Market Coverage Boots on the ground in every market Flex Leader Years of experience leading sales at the largest flex provider Relationships We have relationships with every provider to drive better terms, availability, and deal process Data Wide reach of information leveraging trends, deals, and growth metrics
Use Strategies
– Regional HQ – Satellite – Collaboration Hub
– Hub & Spoke – Distributed workforce (all access)
Product Options
– Full floor office/building – Office Suites – Private Offices
– Dedicated Desks / Hot Desks – All Access – On Demand
Case Study: Multimarket Portfolio Strategy
Global technology company develops multi-market portfolio strategy with WeWork.
New York, NY
Challenge
At the onset of the Covid-19 pandemic, a technology company decided to exit most of their traditional office portfolio. They sought a flexible real estate partner, who could inform where they should take dedicated space in a post-pandemic world.
– –
Solution
In the last year, WeWork helped educate the member on hybrid models and keep them current to shifts in return to work. Designed a flexible portfolio strategy across multiple markets, including dedicated office space coupled with WeWork All Access. Programmed additional phone booths into the company's office for more privacy and space for calls.
Asset Use Case Industry Term Size Move-In
Details
125 W 25th Street Dedicated office + WeWork All Access Technology 12 months 190 desks, 150 WeWork Access passes Fall 2021
Users of Flex Space
Thank you!
212-372-2451
andrew.sachs@nmrk.com
ben.shapiro@nmrk.com
212-372-2421
elizabeth.hart@nmrk.com
415-445-5109
john.cilmi@nmrk.com
212-372-2115
