—— Manhattan Office Vacancy Hits Record High; Patek Philippe to Launch First New Model in 24 Years; Netflix Restructures Film Division; Tesla, CATL to Co-Build U.S. Plant; Labor Exploitation Plagues U.S. Garment Industry; Tech Stocks Surge in Q1; Global M&A Plunges in First Quarter
1. Manhattan Office Vacancy Hits Record High
According to brokerage firm Jones Lang LaSalle Inc., Manhattan office buildings reached a record 16% vacancy rate in Q1, marking the worst leasing activity since Q2 2021.
JLL Head of Research Andrew Lim said new and renovated office space continues to add to supply, which now totals 1.5 million square feet.
Rents for office space remained relatively stable at approximately $76.96 per square foot, supported mainly by high-end new developments.
The trend has increased pressure on owners of older buildings—remote work has made employees prefer newly built or recently renovated spaces.
New York City Mayor Eric Adams stated, “We must renovate office buildings as soon as possible or convert them into residential units.”
Thanks to luxury new developments, office rental prices remained steady in Q1 despite record vacancies.
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2. Patek Philippe to Launch First New Model in 24 Years
Thierry Stern, CEO of Swiss family-owned watchmaker Patek Philippe SA, revealed that the company plans to launch its first new model in 24 years by the end of this year or early next year.
Speaking at the annual Watches and Wonders show in Geneva, Stern said the design and prototype of the new watch are complete, and he is very pleased with the result. At 52, he declined to say whether it would be a sports or dress watch.
The last new model from Patek Philippe was the Twenty~4 women’s line introduced in 1999. A new release after 24 years will mark a major milestone for the legendary brand, founded in 1839.
Recently, the company launched the hot-selling Nautilus 5811, priced at $70,000. Due to overwhelming demand and limited supply, resale prices often multiply.
Secondhand prices for the Patek Philippe Nautilus 5711 and 5811 can easily double or more.
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3. Netflix Restructures Film Division
Today, streaming giant Netflix announced a major restructuring of its film production division and will reduce the number of films released annually.
As part of the overhaul, Netflix will merge its mid-size and low-budget film divisions, resulting in some layoffs. Lisa Nishimura, head of comedy and documentaries, and Ian Bricke, VP of the film unit, will also leave the company after 15 and 10 years, respectively.
Film head Scott Stuber said he wants to reduce output to improve quality. Currently, Netflix produces over 50 films a year—far more than other streamers.
While titles like All Quiet on the Western Front and Glass Onion have won Oscars or racked up massive viewership, most Netflix films fail to gain traction.
Overproduction drains budgets and lowers quality, resulting in films that fail to capture audiences.
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4. Tesla, CATL to Co-Build U.S. Plant
Sources say Tesla plans to co-develop a U.S. manufacturing plant with CATL, the world’s largest EV battery maker.
Tesla is currently in rapid expansion mode and plans to invest $22 billion to boost production and lower costs amid intensifying industry competition. CATL’s lithium iron phosphate (LFP) batteries are cheaper than nickel-based alternatives and are critical to Tesla’s strategy.
Tesla is considering Texas for the plant, though a final location has not been confirmed. As in Ford’s partnership with CATL, Tesla would own and operate the facility, while CATL licenses its technology in exchange for fees.
Tesla representatives and regulators have acknowledged key provisions of the upcoming Inflation Reduction Act.
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5. Labor Exploitation Plagues U.S. Garment Industry
After investigating over 50 garment contractors supplying major U.S. retailers like Nordstrom and Dillard’s, the U.S. Department of Labor found labor violations at more than 80% of them.
Violations included off-the-books wage payments with no pay stubs. In the worst case, a contractor paid workers just $1.58 per hour.
Maxine Bedat, Director at New Standard Institute, said the findings highlight widespread labor abuse in fashion. “No brand should exploit workers,” she stated.
Last year, California enacted the Garment Worker Protection Act to ensure tailors receive minimum wages. New York State and federal lawmakers plan similar bills to improve supply chain transparency.
A Labor Department official noted that most consumers are unaware of the injustices behind ‘Made in USA’ clothing.
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6. Tech Stocks Surge in Q1
In Q1, the Nasdaq 100 Index surged more than 20% from its December low—officially entering a bull market. Nvidia shares rose 90%, while Tesla and Meta gained 60% and 74%, respectively.
Factors driving the tech rally include:
- The banking crisis made tech stocks appear relatively safer;
- Tech companies have strong balance sheets and enough cash to weather downturns;
- 10-year Treasury yields dropped to 3.5%, boosting tech valuations;
- Tech stocks were heavily sold off last year, reducing their premiums and making them more attractive.
Powered by tech giants, the Nasdaq 100 far outperformed the broader market in Q1.
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7. Global M&A Plunges in First Quarter
According to Refinitiv, global M&A volume fell 45% year-over-year to $550.5 billion in Q1—marking the steepest quarterly drop since 2001.
Frank Aquila, senior M&A partner at Sullivan & Cromwell, said the environment remains highly challenging, with many firms worried about recession risks and broader economic uncertainty.
Across regions, Europe led the decline with a 63% drop to $81.6 billion. The U.S. and Asia-Pacific fell 47% and 24%, respectively.
Healthcare, tech, and industrials were rare bright spots. Healthcare alone accounted for one-fifth of all deal value, largely due to Pfizer’s $43 billion acquisition of Seagen.
Amid economic turmoil and rising interest rates, global M&A deal volume and value plummeted in Q1.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.