X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Advertising Clicks

Over the past few months I have focused this column on the demise of numerous businesses whose space has yielded to digital solutions. Well, yesterday there was a pivotal move in the advertising-agency space as giants Publicis and Omnicom announced a $35 billion merger to battle the accelerating transition of the balance of power to digital media. Silicon Valley behemoths such as Google and Facebook, who provide digital ad space automated online, scraping the intermediary ad agencies, now represent 22% of advertising spend, and are growing rapidly. Ad agencies for sure aren’t going away tomorrow, but they are shrinking rapidly, and the Publicis and Omnicom merger is testimony to the new reality. This also represents, yet again, another business segment whose real estate occupancy will decline. Granted, Google and other Silicon Valley users are expanding rapidly, evidenced by Google’s growth in New York City. However, they are orienting to what were fringe locations in aggregately lower occupancies than the advertising giants. This spells trouble for core markets where we have already seen law firms, investment banks, and other large users evaporate or dramatically reduce their office occupancy.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.