Newmark Names Susan Machtiger to Lead Its Consulting Practice
With trophy office space scarce in Manhattan, companies need strategic advisors to evaluate location decisions as part of broader business strategy, not just lease negotiations.
Manhattan's tight trophy office market is reshaping how companies approach real estate decisions. With premium space now scarce and competition fierce, firms increasingly need high-level advisors to think beyond square footage and square dollars.
Newmark's September 2026 appointment of Susan Machtiger as Executive Chairman of Newmark Consulting reflects this shift. Machtiger, who has spent over 20 years advising some of the largest companies in the world on brand strategy and organizational purpose at firms including Ogilvy Consulting, JWT and Landor, now leads Newmark's consulting practice alongside Dr. Yasmeen Coning. The pairing signals a move by major brokerage firms toward offering integrated strategic advice that treats real estate decisions as part of broader business transformation—not just as procurement.
As companies evaluate major space commitments in a market where trophy space is scarce and expensive, they face strategic questions that go beyond traditional real estate brokerage: Will this location support talent retention and organizational culture? How does this lease commitment fit with hybrid work models and evolving employee expectations? What data-driven insights should guide the decision? These questions explain why advisory firms specializing in business strategy, organizational behavior, and workplace transformation are now working alongside real estate professionals.
The Flight to Quality Reshapes the Market
Manhattan's office market bifurcated sharply after the pandemic, creating two distinct markets within the city. Available space fell to 65.4 million square feet in August 2026, the lowest since September 2020. Yet that aggregate figure obscures a stark divide: the top 50 Midtown buildings maintain an availability rate below 3.7%, while the broader Midtown market's availability rate is above 12%. Manhattan's overall vacancy of just over 10% in August 2026 was the lowest among the 25 largest U.S. metros surveyed.
Trophy office space represents a much smaller share of total office supply—5-star buildings comprise just 11 percent of citywide inventory—yet continues to draw outsized demand. Asking rents in Midtown reached $84.68 per square foot, approaching pre-pandemic highs. This creates a new competitive dynamic: companies pursuing trophy space now bid against each other in ways that rarely occurred when vacancy was high and landlords desperate for tenants.
The contrast with secondary markets is pronounced. Since 2020, Class B and Class C properties have seen occupied space drop by 23 million square feet (an 8 percent decline), while high-end trophy office gained 6.6 million square feet of occupied space, according to city data. Firms seeking significant square footage now plan years in advance, knowing that new construction may be their only option for space in truly premium locations. A Chelsea property recently saw asking rents climb from $56 to between $60 and $70 per square foot through competitive bidding alone, illustrating how supply scarcity creates value concentration in premium buildings.
Why Trophy Decisions Now Demand Strategic Advice
The scarcity and cost of premium space forces corporate occupiers to think differently about real estate. A company considering a 25,000-square-foot commitment in a trophy Midtown building now faces questions that go well beyond lease economics: Will this location attract and retain talent? Does this location support the brand identity the company wants to project? How does this space allocation fit with hybrid work policies, organizational culture, and employee expectations around work-life balance?
These strategic dimensions have become central to corporate real estate decisions. According to corporate real estate trend analysis, work-life balance now outranks salary as the top employee retention driver. Persistent underutilization of office space means that simply securing premium space no longer guarantees business value unless that space delivers the employee experience necessary for talent retention. Companies are learning that employees reject "bad office experiences" rather than rejecting offices themselves, making the quality and thoughtfulness of workplace design increasingly important.
These questions explain why Newmark is expanding its consulting capabilities to span "business strategy, people, purpose, place and brand." The consulting practice is no longer answering the question "Can we find the space?" but rather "Should we commit capital to this location and lease term, given our strategic priorities?" Dr. Yasmeen Coning's partnership with Susan Machtiger, whose expertise spans brand strategy and organizational purpose, reflects this expanded scope. The practice now addresses how location decisions support broader business goals around talent, organizational culture, and brand positioning.
The pattern of tenants "trading up" to better-quality buildings confirms this strategic shift. Even as Manhattan office assessed valuations grew only 2 percent in fiscal year 2025, high-end trophy office gained occupied space while Class B and C properties lost ground. This pattern reflects tenants deciding that the incremental cost of premium space justifies the benefits—but making that decision requires sophisticated analysis beyond real estate expertise.
Advisory Services Grow as Complexity Increases
The broader real estate advisory market is expanding to meet this growing complexity. The Real Estate Advisory Service Market was valued at $24.15 billion in 2025 and is projected to reach $39.94 billion by 2032, growing at a compound annual rate of 7.45 percent. This growth substantially exceeds overall commercial real estate market growth, indicating rising demand for strategic advisory services relative to transaction services.
Multiple factors drive this expansion. Rapid urban expansion increases demand for professional advisory support as stakeholders address complex zoning regulations, financing structures, and market-related risks. Increasing complexity in global property transactions, cross-border capital flows, and heightened demand for data-driven investment decision-making all contribute. Corporate occupiers now require advisory firms to address questions around data infrastructure, energy management, and sustainability compliance alongside traditional real estate expertise.
Clients are increasingly turning to advisory firms for questions beyond transaction execution: market entry planning, asset repositioning, risk evaluation, and long-term value enhancement. PropTech and AI-driven asset management are reshaping service delivery. Environmental, social and governance standards are prompting a surge in advisory services related to green building certifications and sustainable real estate strategies. Rising utility costs—up 20 to 50 percent across regions—demand robust tracking systems, making energy management advisory increasingly important.
For corporate occupiers in Manhattan, these trends compound. A company must now evaluate not only whether space is available and affordable, but also whether the lease terms align with business flexibility, whether the building meets evolving workplace standards, and whether the location supports recruitment and retention. Companies need data-driven insights into office utilization, employee preferences, and future workspace needs. They also face decisions about portfolio elasticity—whether to commit to long-term fixed space or maintain flexibility for changing needs. Advisory firms that can help clients think through these interconnected questions offer value that traditional transaction brokers cannot.
“Companies are learning that employees reject bad office experiences rather than rejecting offices themselves, making workplace design increasingly important to talent retention.”
Bidding Wars Accelerate Decisions Under Uncertainty
Manhattan's office leasing velocity reached levels not seen in decades. If current pace held through year-end, 2026 could become the busiest leasing year since 2000—a remarkable rebound from pandemic-era uncertainty.
Artificial intelligence companies are primary drivers, expanding footprints with unpredictable urgency. As Max Koeppel, director of leasing at Koeppel Rosen, explained: "AI companies will take 15,000 square feet today, then they need 30,000 in a year from now, and 60,000 the following year." This creates a strategic puzzle for corporate occupiers: how to commit capital to space when utilization needs remain uncertain.
This velocity has compressed deal timelines dramatically. Some transactions now conclude within weeks rather than months, with proposals sometimes submitted before tenants even tour spaces. This acceleration raises the stakes for corporate real estate decision-making, giving firms less time to evaluate whether a major space commitment fits their strategic priorities. Yet commercial real estate leaders are becoming more cautious. While 83 percent of surveyed executives expect revenue improvements, fewer plan increased expenditures, and respondents cite capital availability constraints, elevated interest rates, and rising cost of capital as primary concerns. These macroeconomic headwinds create tension: companies face pressure to decide quickly about trophy space while managing uncertainty around their financial capacity to commit to long-term leases.
In this environment, strategic advisory becomes valuable. Advisors who can help companies evaluate whether a particular space commitment aligns with organizational strategy, talent goals, and financial flexibility provide guidance that goes beyond what traditional real estate brokers offer.
What Machtiger's Hire Signals About Market Evolution
The appointment of Machtiger, a brand and organizational strategy expert with two decades of experience advising large corporations, to lead Newmark Consulting alongside Dr. Yasmeen Coning, signals that major brokerage firms see demand for advisory work that goes far beyond real estate transaction expertise. This hire reflects a fundamental shift in how leading real estate companies position themselves within corporate decision-making.
Newmark is positioning itself to advise corporate occupiers not just on where to find space, but on whether and why a particular real estate commitment serves broader business goals. The consulting practice's stated focus on integrating "business strategy, people, purpose, place and brand" acknowledges that real estate decisions are now inseparable from organizational strategy. Companies evaluating whether to make a five- or ten-year commitment to premium Manhattan space need advisors who understand not just lease terms, but organizational culture, talent strategy, brand positioning, and workplace experience.
In a market where trophy space is scarce, expensive, and increasingly allocated through competitive bidding, that strategic guidance carries real value. As real estate advisory services grow at rates well above overall commercial real estate market growth, major firms are repositioning to capture the higher-value advisory work that accompanies complex corporate decisions. Newmark's investment in brand strategy and business transformation expertise signals confidence that corporate occupiers will increasingly seek this integrated guidance as they navigate one of their largest and most strategically important operational decisions.
