Norman Bobrow, Norman Bobrow & Company, Inc.

What are your predictions for commercial real estate in 2014? At Norman Bobrow & Company we predict that in 2014 office rents in New York City are going to fall by 5-10% because there is an abundance of office space on the market that has not been rented for over the last year or even longer. We know of several properties (prominent buildings) in Manhattan that comprise over 3 million s/f of vacant office space. Existing landlords are going to be compelled to reduce their office rents in 2014 to a correct market price in order to attract and retain tenants. Not every tenant has to pay market rent! We have done many deals like this in 2013 for our tenant/clients who include law firms, accounting firms, media & technology companies, real estate companies and other private and public corporations. We expect the trend to continue.