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KKR Dumps Manhattan Office Plans

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From left: Tishman Speyer CEO, Rob Speyer, KKR co-founder Henry Kravis, rendering of 341 Ninth Avenue (Getty, Tishman Speyer)

KKR is the latest company to rescue office plans as the sector continues to be shaped by remote work.

The private equity giant has seen Tishman Speyer’s 300,000 square feet at 341 Ninth Avenue in West Chelsea Insider. reportThe company had considered a space near its Hudson Yards headquarters as it may consolidate other office spaces in Manhattan, but has since scrapped the plan.

“It’s safe to say that we have paused the review of that space and are not moving forward at this time,” a KKR rep told the outlet.

KKR has multiple offices throughout the city, renting space at 10 Hudson Yards and four at the World Trade Center. The company also 30 Hudson Yardsthe company’s New York headquarters.

Despite initially being in favor of forcing employees to return to the office, the company is joining the ranks of big companies and rethinking its office footprint.

In addition to our permanent remote work policy, miniaturization spurred by Economic uncertainty is causing major companies to sublet space or suspend new developments. Nationwide, the tech company aims to sublease a whopping 30 million square feet, up from his 9.5 million square feet in the fourth quarter of 2019, according to recent CBRE data.

Ride-sharing company Lyft began looking to cut office space in half over the summer, subleasing 615,000 square feet across four markets. Social media giant Meta recently dropped plans to occupy his 589,000 square feet in Austin. Meta and Amazon also recently withdrew plans to expand in New York City.

CoStar brings the amount of subleased space available nationwide to a record 212 million square feet.

This phenomenon is seen in trades across Manhattan.tissue man spyer agreed to acquire a tenancy The upper floors of 341 9th Avenue are home to one of the United States’ largest US Postal Service processing centers. The developer has set out to convert his 600,000 square feet on six floors into office space.

In the fourth quarter of 2020, Tokyo-based public relations and advertising firm Dentsu experienced the biggest drop in the subleasing market for the period. About to sublease all 324,000 square feet It was at 341 Ninth Avenue.

Tishman Speyer did not immediately respond to The Real Deal’s request for comment.

— Holden Walter Warner

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