T
he era of sweetheart pandemic office leases may be coming to an end, with companies looking for space in the next few years facing a challenging market. According to top CBRE broker Mary Ann Tighe, the dearth of new office construction is shifting the balance of power between tenants and landlords.

    Tighe warns that large tenants should have secured their deals already, as the available supply will dwindle rapidly. By 2027, she predicts that companies with space needs over 100,000 square feet may struggle to find suitable options. Manhattan's commercial pipeline includes 2.4 million square feet of new office space set to be completed by 2026, but Tighe notes that 79% of this space is already leased.

    As a result, the city will likely face a desperate need for new supply, with Tighe describing it as essential "like oxygen." While Manhattan's overall availability rate remains high at over 17%, hot submarkets like Park Avenue are experiencing low vacancy rates and rising rents. This trend suggests that tenants seeking modern office space may soon find themselves at the mercy of landlords.

    Tighe shared insights into some of her firm's biggest leases, including Chinese firm TikTok's 2020 deal for 232,000 square feet at One Five One building. The company refused to sign unless the building name was changed from "4 Times Square" due to the number four being considered unlucky in Chinese culture.

    In another notable example, JP Morgan had been in talks with SL Green to buy One Vanderbilt before deciding to tear down its headquarters and build a new tower. The sticking point was the planned observation deck, which was expected to generate significant revenue but ultimately proved too costly for the bank.