Financial institutions that moved away from Manhattan during the credit crisis
are beginning to return to the New York borough.
This is the assertion of Scott Latham, vice-chairman of Jones Lang LaSalle's New York Capital Markets Group, who was speaking at the Reuters Global Real Estate and Infrastructure Summit.
He explained to the news provider that as profits began to rise, the banks looked to return to offices in Manhattan with an eye on future growth.
Statistics from Jones Lang LaSalle show that financial institutions make up 25 per cent of the occupants in the borough's offices, a return to 2007 levels after seeing this proportion drop to 20 per cent in 2009.
"It's naive to think that as a corporation you can move to another locale, save money on your rent and nothing else will be impacted," Mr Latham stated.
He added that credit from such companies is now even more attractive to landlords and property investors
because it is supported by the government.
Meanwhile, the media sector is also becoming an important occupier of Manhattan office space, with chief executive of SL Green Realty Marc Holliday telling Reuters the industry "is doing extremely well on a relative basis".
- Wednesday 22 June 2011