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  "documentTitle": "Empire State Realty Trust (ESRT)",
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  "presentationDate": "2020-05-06 00:00:00",
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      "text": "The New York Office Market Isn’t Facing ‘Headwinds’ – It’s Facing an Existential Hurricane",
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      "text": "office vacancy: 20%",
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      "text": "In the wake of the Great Financial Crisis, financial services tenants have failed to be the engine of growth that historically has powered the New York City office market. Financial service tenants have increased their footprint in Manhattan by just 0.5% on average annually over the past decade according to data provided by CBRE and may now be poised to shrink.",
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      "text": "Land & Buildings sees New York office vacancies reaching 20% and rents declining 15 to 20% - Believes Empire State Realty Trust (ESRT) uniquely in the crosshairs, but office landlords across the city likely to suffer",
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      "text": "Numerous headwinds have weighed on New York office landlords in recent years as rent growth has stalled and values plateaued. Then a hurricane began to form in 2018, as the $10,000 cap on the state and local tax (SALT) income deduction hurt New York’s competitiveness. Things continued to worsen in 2019, as WeWork (NYC’s largest office tenant) began its implosion. Now in 2020, this existential hurricane has become a Category 5, as NYC is the epicenter for COVID-19 in the United States – and Empire State Realty Trust is poised to bear the full brunt of this storm.",
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      "text": "New York City office vacancy could reach 20% or more. During the last two recessions, the vacancy rate increased by 600-900bps. Considering that the current Manhattan office vacancy rate is 11.3%, a 20% vacancy rate estimate could actually prove conservative. Moody’s Analytics forecasts national office vacancy rates rising to 20% by 2021 with rents in New York City plummeting as much as 25%.",
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      "text": "According to Cushman & Wakefield, Midtown Manhattan net effective office rents have been roughly flat since 2015, despite the strong growth in the broader economy. With vacancy poised to rise sharply, a 15-20% pull back in rents appears likely.",
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      "text": "New competitive construction, soft demand from financial services tenants and corporate relocations have all weighed on Manhattan office fundamentals over the past several years.",
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      "text": "Millions of square feet of new office developments, particularly at Hudson Yards on the west side of Manhattan, have weakened the incumbent landlords in the city. These amenity-filled, Class A assets have primarily pulled tenants out of legacy midtown Manhattan office buildings, pushing up vacancies. Another 25 million square feet of new office product is still planned to be delivered between now and 2024.",
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      "text": "Stamford, CT (May 6, 2020) – Today Land and Buildings Investment Management LLC (together with its affiliates, “Land & Buildings”) issued the following statement regarding its belief that the New York office market is facing an existential hurricane and that Empire State Realty Trust (NYSE: ESRT) is poised to bear the full brunt of this storm.",
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