Blend and Extend

The overall availability rate in Manhattan is improving, but still at historically high levels.  Given these tenant-favorable conditions, organizations with expiring leases in 24-36 months are often able to capitalize and negotiate for favorable rents and concession packages.  How is this possible?

The solution is what we call a “blend and extend.”

With the uncertainty of the leasing market and disconcerting economic headwinds, landlords are not only concerned with today’s cash flow, but also about keeping their buildings filled on a long-term basis, and not having to spend capital to re-let a space in 2-3 years.  The “blend and extend” strategy provides landlords with an early lease extension of a committed tenant (thus stabilized rent) and provides the tenant with an immediate rent reduction and the provision of concessions such as work allowance and free rent. 

➡️ For insights into how Manhattan’s premium office buildings are holding strong amidst market challenges, read The Strength of Manhattan’s “Better Buildings” in the Midtown Core.

I would be delighted to speak with you about your occupancy situation and discuss whether the blend and extend strategy would make sense for your organization.