KPG Funds Reports 85% NYC Office Occupancy Rate Doubling Manhattan

Construct It Bespoke and Workplace Tenants Will Come and Need to Keep!

NEW YORK, Sept. 09, 2022 /PRNewswire/ — KPG Funds is bucking the pattern in relation to attracting and retaining tenants as of late, put up pandemic with most workplace buildings reporting decrease occupancy charges.

Whereas the pandemic has brought on a shift in what the office appears to be like like with many firms chopping again on area and utilization patterns by as much as 20 p.c or extra, at KPG Funds’ workplace buildings the speed of occupancy is 85%, greater than double town’s occupancy fee (as reported in June) of 42.5 p.c.

The workplace improvement agency buys Class B & C architecturally vital buildings in want of rehabilitation and transforms them into Class A boutique workplace buildings that tenants, and employees need to come to work at with top quality facilities extra typically present in boutique accommodations or high-end luxurious residences.

“The workplace sector has seen the best shift as results of pandemic in traders priorities,” stated KPG Funds co-founder and CEO Greg Kraut, who stays constructive. Kraut and KPG have recommendation for workplace constructing homeowners and traders. Whereas it’s too early to say what a post-COVID world appears to be like like, in KPG Funds’ buildings, tenants are filling the buildings with rents upward of $100 per sq. foot, even through the pandemic. “We’re seeing a return nearer to the pre-pandemic regular,” says Kraut, who final 12 months introduced a $1 billion fund to purchase workplace and retail area. 

Kraut says it’s time for constructing homeowners and tenants/employers to work collectively to redesign present workplace area, and for firms to hunt effectivity beneficial properties in what they occupy and make the previous “static” workplace a wholesome, useful place the place employees need to come again to places of work which are conducive to worker’s wellbeing and productiveness.

“Employers need greater than a spot for workers to go surfing and sit in entrance of a pc,” stated Kraut. Tenants, he stated, are requesting extra considerate, environment friendly use of area together with extra communal areas, facilities, collaborative assembly areas and breakout rooms to welcome again staff and appeal to high expertise.

“There continues to be a want by tenants to create a piece setting that provides their staff a purpose to need to be within the workplace,” added Kraut. “They use it as a recruitment and retention instrument to draw expertise in extremely aggressive sectors. We now have seen clear demand for non-commodity, bespoke area which has solely elevated as employers need to give staff each purpose to be within the workplace for coaching, group, or enterprise era.”

Kraut and KPG have developed a model like accommodations which have completely different themes for every of their workplace buildings with many facilities designed to draw women-owned companies, excessive finish kitchens and bogs, lactation rooms and sleep pods. 

Companies proceed to see the workplace because the central hub of enterprise exercise and are making long-term commitments and expansions. ”Even when an organization adopts a hybrid work week, all people nonetheless has a desk,” says Kraut.

Kraut believes strongly in New York and a better inflow of tenants. “Round 70 % of staff in New York Metropolis are beneath 35 years previous they usually need to get out of their residences and again to the workplace, but it surely needs to be the fitting workplace constructing close to transit hubs and funky, secure neighborhoods with good eating places and buying.”

Older buildings in different elements of town like Midtown that haven’t been modernized, will likely be left behind, as obtainable area will increase at a document fee. Kraut Says

Media Contact:
Greg Kraut
[email protected]