Conventional thinking was that small and rapidly growing companies, or companies that were uncertain about longevity of project would rent shared office space.
This limited the shared office market to companies or divisions under 10 people. Now huge firms like Amazon who just rented out an entire WeWorks at 34th Street and Microsoft renting shared office space near the Watson project in the east village.
Time will tell how many other firms follow.
This shows how cash hungry and struggling the retailers are. This also shows the depth of the market for shared office concepts. WeWorks continues to expand and is filling their facilities. That is a great indication of market depth. WeWorks is just one of many providers of co-working centers.
New York City submitted a bid to get the 2nd Amazon headquarters which means 50,000 jobs. New York City has 4 locations or areas where they could build and an existing amazing transportation system. New York City also has a deep bench of talent for Amazon to draw on and is therefore a likely city to be selected. Amazon recently announced they were hiring 2,000 employees in N.Y. for advertising and will move to the former Skyrink building.
The city is about to make it harder to build hotels in New York City manufacturing zones. The current proposal will require a special permit. This will increase costs and time to get sites ready. The bigger problem is this will give unions a greater opportunity to make the job site union which will drive up costs for new hotel rooms. This law will make the existing inventory more valuable as the city is creating a higher barrier to entry.
With Amazon’s latest bid for Wholefoods, the consumer should start to see consolidation in the supermarket space. Purchase price of Whole foods 13.7 Billion. Wealth destruction of other supermarket chains $40 billion. That indicates the amount of carnage expected to come in the near future. What is Amazon going to go after next pharmacy??
Starbucks Coffee’s is closing all its 379 Teavana stores by the spring of 2018.