The Downtown office market is in even worse shape than widely reported data indicate, according to several major dealmakers.
One of them, an industry legend not given to doom-and-gloom scenarios, told us that huge amounts of space are quietly up for sublease even at the World Trade Center and Brookfield Place Lower Manhattans best-performing properties.
Most brokerage firms cite FiDi-area availability including space currently vacant or soon to be — at between 20% and 23%, compared with around 16% uptown. But so-called shadow space cited by the market insider could raise the total much higher.
Not every building is in trouble. The districts grim overall data are skewed by two particular enormous properties Paramount Groups transitioning 60 Wall Street, where most of 1.6 million square feet are yet to be leased, and 111 Wall Street, an entirely empty 1 million square-foot address thats now in foreclosure.
But other struggling buildings are also on the downbound train, such as 40 Wall Street. The landmark tower is about 30% empty and its plight will likely worsen as the Trump Organization skyscraper is at risk of seizure by state attorney general Letitia James.
Even more vulnerable are Downtowns large number of pre-war, Class B-minus buildings that few tenants want at any rent and which cant easily convert to residential use.
Yet hope might be on the way. According to VTS, the national real estate technology platform that uses AI to monitor and interpret market office-space tours — look-sees by companies eyeing a move or expansion have recently been higher Downtown than in Midtown or Midtown South.
Lower Manhattan saw 40% more so-called tire-kicking visits in the months of December 2023 through February 2024 than it did between September and November 2023.
A 43% increase in tours month over month easily beat Midtowns 25% and Midtown Souths 11%, according to VTS. Much of the tenant interest Downtown was by companies seeking 50,000 square feet or more.
VTS chief strategy officer Ryan Masiello said, I think generally, companies are starting to realize were at the bottom of the market right now. More companies are exploring to try to take advantage of lower rents, especially downtown, he said.
But one highly accomplished downtown market-watcher was skeptical of VTS findings.
They can only be true if theyre including the smallest users. It definitely is not true of tenants looking for more than 20,000 square feet, the insider said.
Manhattan leasing in all submarkets hit the mute button in the first quarter, according to Savills which cited a dearth of large deals.
The first quarters 6.8 million sf of transactions was 6.6% lower than in the first three months of 2023, Savills said.
Interestingly, three of the largest office deals were renewals and/or expansions by major retailers — including for Michael Kors, Burlington Stores and David Yurman, which tallied a total of nearly a half-million square feet.
At least one major landlord saw some positive news. At SL Greens 485 Lexington Ave., four recent new leases and one renewal totalled 64,303 square feet.
Leasing director Steven Durels said, Our recent success at 485 Lexington confirms that well-located buildings are experiencing increased tenant demand.
In the two largest new leases, RSC Insurance Brokerage took 27,964 square feet on the entire 17th floor and Exponent, Inc., an engineering and scientific consulting firm, took 14,383-square feet on the 22nd floor.
Smaller deals include capital markets company William ONeil & Co. for 4,797 square feet and Graham Holdings Company signed for 3,006 square feet.
In addition, Tegna, Inc., a broadcast, digital media and marketing services company, renewed its 14,078-square-foot lease on the 27th floor.
The biggest city in the Sahel has been ransacked and left in ruins.
War erupted in Sudan’s capital Khartoum in April 2023 and sent millions searching for safety.
The city was quickly captured by the paramilitary Rapid Support Forces (RSF) after a power struggle with the Sudanese Armed Forces (SAF) for total control.
At least 61,000 people were killed from the fighting and siege conditions in Khartoum state alone.
Thousands more were maimed and many remain missing.
The empty streets they left behind are lined with charred, bullet-ridden buildings and robbed store fronts.
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The once shiny skyscrapers built along the confluence of the River Nile are now husks of blackened steel.
The neighbourhoods are skeletal. Generational homes are deserted and hollow.
Image: Damage from fighting around Khartoum
Trenches snake the streets where copper electric cables were ripped out of the ground and pulled out of lampposts now overridden with weeds.
The majority of the 13 million people displaced by this war fled Khartoum. Many left in a rush, assuming it would only take a few weeks for peace to be restored.
My parents were among those millions and in the midst of the abandoned, looted homes is the house where I grew up.
Image: Yousra Elbagir’s family home was left in ruins by RSF troops
Image: Yousra said it was likely a bomb had previously fallen nearby and shaken the house at its base
A shell of a home
I have to strain my eyes to see the turn to my house. All the usual markers are gone. There are no gatherings of young people drinking coffee with tea ladies in the leafy shade – just gaping billboard frames that once held up advertisements behind cars of courting couples parked by the Nile.
Our garden is both overgrown and dried to death.
The mango, lemon and jasmine trees carefully planted by my mother and brother have withered.
Image: Structural damage to the outside of the home
The Bougainvillea has reached over the pathway and blocked off the main entrance. We go through the small black side door.
Our family car is no longer in the garage, forcing us to walk around it.
It was stolen shortly after my parents evacuated.
The two chairs my mum and dad would sit at the centre of the front lawn are still there, but surrounded by thorny weeds and twisted, bleached vines.
Image: How the home looked before Sudan’s war
Image: And how it looks now
The neighbour’s once lush garden is barren too.
Their tall palm trees at the front of the house have been beheaded – rounding off into a greyish stump instead of lush fronds.
Everyone in Khartoum is coming back to a game of Russian roulette. Searching out their houses to confirm suspicions of whether it was blasted, burned or punctured with bullets.
Many homes were looted and bruised by nearby combat but some are still standing. Others have been completely destroyed.
Image: How the home looked before the war
Image: And how it looks now
The outside of our house looks smooth from the street but has a crack in the base of the front wall visible from up close.
It is likely a bomb fell nearby and shook the house at its base – a reminder of the airstrikes and shelling that my parents and their neighbours fled.
Inside, the damage is choking.
Most of the furniture has been taken except a few lone couches.
The carpets and curtains have been stripped. The electrical panels and wiring pulled out. The appliances, dishes, glasses and spices snatched from the kitchens.
Image: Yousra shows her mother pictures found in the home
The walls are bare apart from the few items they decided to spare. Ceilings have been punctured and cushions torn open in their hunt for hidden gold.
The walls are marked with the names of RSF troops that came in and out of this house like it was their own.
The home that has been the centre of our life in Sudan is a shell.
Image: Sudan’s war has left the country fractured
Glimmers of hope
The picture of sheer wreckage settles and signs of familiarity come into focus.
A family photo album that is 20 years old.
The rocking chair my mother cradled me and my sister in. My university certificate.
Image: Yousra finds her university certificate in the wreckage
Celebratory snaps of my siblings’ weddings. Books my brother has had since the early nineties.
The painting above my bed that I have pined over during the two years – custom-made and gifted to me for my 24th birthday and signed by my family on the back.
There are signs of dirt and damage on all these items our looters discarded but it is enough.
Image: Yousra’s parents pictured at home before they fled Khartoum
Evidence of material destruction but a reminder of what we can hope will endure.
The spirit of the people that gathered to laugh, cry and break bread in these rooms.
Image: A portrait of Yousra’s grandmother damaged by RSF troops
The hospitality and warmth of a Sudanese home with an open door.
The community and sense of togetherness that can never truly be robbed.
What remains in our hearts and our city is a sign of what will get us through.
A few days later, I spoke to Mr Zelenskyy in person when he confided to me that maybe he would have to step down if NATO could guarantee Ukraine membership – a man who perhaps sensed he could never win against a hostile Mr Trump.
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5:07
Sky News meets Zelenskyy: The key moments
Yet, fast-forward to last weekend in Rome, and an iconic picture of the two men in close conversation at the Pope’s funeral.
This time round, it is Russian President Vladimir Putin on the receiving end of the presidential anger, blaming him for the fact that “too many people are dying!”
Image: Trump and Zelenskyy talk in the Vatican. Pic: AP
To Trump’s supporters, this is the smart negotiator, constantly repositioning himself as new information comes in, prior to pulling off a spectacular deal.
To his many detractors, it indicates a dangerous incoherence that is replicated in other key areas, including tariffs as well as his relationship with his allies in Europe and his foes in Beijing.
Flexible or fallible; in control or all at sea? In the fast and furious world of Donald Trump, it’s almost impossible to call.
The only constants are his unwavering self-belief, or as the man himself says: “I aim very high, and then I just keep pushing and pushing and pushing to get what I’m after.”
A paramedic in Gaza who was detained for more than five weeks following an Israeli attack that killed 15 aid workers has been released, the Palestinian Red Crescent Society (PRCS) said.
Asaad al Nsasrah was one of 17 aid workers who were attacked in Tel al Sultan in southern Gaza by Israeli forces on 23 March.
Asaad was one of two first responders who survived – the other 15 were killed.
He was initially thought to be missing, as his body was not among the dead. It was not until 13 April, three weeks after the attack, that Israel confirmed Asaad was alive and in Israeli detention.
The PRCS announced Asaad’s release on X and shared a video of him reuniting with colleagues.
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Sky News has seen images showing Asaad, among other released Palestinians, in a grey tracksuit at al Amal Hospital in Khan Younis, where he is undergoing medical examination, according to the PRCS.
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19:54
How two hours of terror unfolded
The PRCS claimed the Israeli military’s investigation was “full of lies”.
Asaad’s voice can be heard in a video, initially published by the New York Times, that shows the moments leading up to the attack on the aid workers.
The video was discovered on Rifaat Radwaan’s phone, which was found on his body by rescue workers five days after the attack.
Among those killed were one UN worker, eight paramedics from the PRCS and six first responders from Civil Defence – the official fire and rescue service of Gaza’s Hamas-led government.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.