Look no additional than one of the largest industrial actual property builders in New York City to see how the retail and workplace industries are being impacted by the coronavirus pandemic.
“Retail is obviously struggling,” Related Cos. Chief Executive Jeff Blau informed CNBC’s “Squawk Box” on Thursday.
The proprietor of the Hudson Yards mall in addition to The Shops at Columbus Circle within the Time Warner Center constructing in New York City stated Related is collecting simply over 50% of retail rents for its malls in Manhattan.
“We expect that will pick up post [re]opening,” he stated.
The metropolis has not but set a date for when malls will be capable to open for enterprise once more. But Blau stated he is hopeful Related will probably be given the inexperienced gentle to reopen Hudson Yards and The Shops at Columbus Circle as early as subsequent week. Other malls within the metropolis embrace Westfield World Trade Center and Brookfield Place. Gov. Andrew Cuomo has allowed malls in different elements of New York state to welcome customers once more, with added precautions.
Hudson Yards, which opened roughly one yr in the past, is already shedding Neiman Marcus as its one division retailer anchor tenant, and has but to call what is going to transfer in that area. Some eating places at the mall are additionally shutting completely.
Related is additionally a serious workplace landlord. Blau earlier this week penned an op-ed in The Wall Street Journal calling for New York City workplaces to reopen.
“This is about bringing New York back to life,” he informed CNBC on Thursday. “The city doesn’t recover by itself.”
In a post-Covid-19 world, Blau stated he envisions workplace buildings being “less dense,” with individuals unfold out over extra buildings. Working from dwelling ought to solely be an choice for parts of time, he stated, not on a regular basis.
“Innovation only happens when people are together,” he stated. “I don’t think the demand of office space is going away.”