Midtown Squeeze Sparks Growing Trend For Short-term Space

As Midtown’s availability rate continues to tighten, standing at the rate of 8.9 percent, more and more tenants are opting to move into short-term space for the long-term.

Normally, tenants take temporary office space for a few weeks or months, most while awaiting permanent accommodation.

But the ability to operate out of fully-furnished, wired temporary space for up to two years is becoming more and more economically attractive to tenants, who don’t wish to commit or sublease or direct space requiring a minimum lease commitment of five years or more. eEmerge has just signed two short-term tenants for the long-term at 28 West 44th Street.

Hispanic Business Magazine has contracted to occupy offices on the 15th floor and SwapsWire has signed to move into the largest office on the 16th floor, each committing to two-year terms.

“A staff of nine from SwapsWire, a company which operates an electronic platform designed to promote efficiences for the derivatives market, is taking our largest office at West 44th Street,” said eEmerge’s Alexandra Bogen, director of leasing. “And Hispanic Magazine, the ad sales division of the 27-year old Santa-Barbara based publication, which formerly occupied temporary space at our 440 Ninth Avenue building, has committed to three fully-furnished offices for a staff of six.”

Over 15,000 s/f of office space is still on offer at eEmerge’s new 28 Off Fifth Midtown office facility.

“We expect this taking short-term space for the long-term trend to continue,” said Bogen, “because available office space in midtown is contuing to rapidly dwindle.”

Real Estate Weekly, April 12, 2006