The North Star Universal, LLC

Rising Leverage Risk in an Improving NYC Office Market — A North Star Universal, LLC Insight As The North Star Universal, LLC , we’re closely watching one of the most interesting turns in New York City’s commercial real estate landscape right now: the risk of refinancing in an improving—but still fragile—office market. The paradox? Even as leasing heats up, debt service exposure is growing sharper, making commercial property risk mitigation more critical than ever. A Tighter Market, But Risk Isn’t Gone Recent data suggests a meaningful shift in Manhattan’s office dynamics. According to corporate real estate reports, overall availability has dropped to its lowest level since early 2021. ( CRE Daily ) Meanwhile, sublease inventory has fallen by more than a third compared to its 2023 peak. ( CRE Daily ) That tightening is driven by strong lease renewals and expansions, especially in trophy and Class A buildings near transit. ( CRE Daily ) At the same time, macro headwinds persist. Acc...

  Managing Tenant Default and Lease Rollover Risk in NYC Commercial Real Estate By The North Star Universal, LLC At The North Star Universal, LLC , we’ve been closely watching a critical trend in the New York City commercial real-estate landscape: rising tenant default and lease rollover risk. When leases expire and tenants hesitate to renew, especially in uncertain markets, it becomes a fault line in commercial property risk mitigation. It’s our job to help owners and investors stay ahead of that shift. Why lease rollover risk demands fresh focus Recent data show that leasing activity in Manhattan is on the rise—availability recently dropped to 16.4 %, the lowest in over four years. ( Avison Young ) While that might look like good news, it actually signals a double-edged sword. A stronger leasing market often raises tenants’ bargaining power and renewal demands. Owners must manage not just vacancy but the financial impact of weaker lease terms, renewal incentives, and potentia...