“Based on what we know today, we would expect that probably there will be a lot cooler demand from tech, which has been a pretty steady consumer of space, certainly in the New York City market.” Even when rates settle in, it might take a little while for some of these companies to reposition themselves for growth,” he said. “The appetite just won’t be there if the rates keep rising. Image courtesy of Tenant Risk Assessmentīrad Tisdahl, CEO of Tenant Risk Assessment, said the expectation is that in the short term, there will be less need for space for some of the bigger tech occupiers because of the uncertainty in the markets and rising interest rates.
Brad Tisdahl, Founder & CEO, Tenant Risk Assessment. Other major tech companies including Google parent Alphabet, Microsoft and Apple have said they may slow hiring and possibly have layoffs.
The news also comes as Meta CEO Mark Zuckerberg said the company will reduce its headcount with a hiring freeze and plans to restructure teams. She said the company remained committed to New York and was making investments to support its most strategic long-term priorities. South as a bridge space until its Hudson Yards and Farley offices were ready. READ ALSO: Return to Office Sentiment Heats Up: BOMAĪ Meta spokesperson said in prepared remarks the company had always viewed 225 Park Ave. Meta will still have about 2 million square feet of space in Manhattan, including offices at Hudson Yards as well as 730,000 square feet of space it recently moved into the Farley Building, a former post office and landmark building redeveloped by Vornado. Also in July, Amazon reportedly decided against further expansion at 5 Manhattan West. During the summer, Meta said it was halting plans to expand its space at 770 Broadway and in Hudson Yards. The most recent tech announcement came last week with news that Meta, the parent of Facebook and Instagram, was exercising an early termination clause and giving up 200,000 square feet of space at 225 Park Ave.
Big technology companies like Meta and Amazon are cutting back some of their Class A office space in Manhattan and office leasing experts say it’s not surprising as they and other businesses grapple with growing economic headwinds and changing space needs due to hybrid and work-from-home trends.
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