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	<title>The Commercial Observer &#187; Education Sector&#8217;s Manhattan Office Space Surges With Monster Deals and Expansions</title>
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		<title>The Commercial Observer &#187; Education Sector&#8217;s Manhattan Office Space Surges With Monster Deals and Expansions</title>
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		<title>Education Sector&#8217;s Manhattan Office Space Surges With Monster Deals and Expansions</title>

		<comments>http://commercialobserver.com/2013/01/education-sectors-manhattan-office-space-surges-with-monster-deals-and-expansions/#comments</comments>
		<pubDate>Mon, 14 Jan 2013 15:19:54 -0400</pubDate>
					<link>http://commercialobserver.com/2013/01/education-sectors-manhattan-office-space-surges-with-monster-deals-and-expansions/</link>
			<dc:creator>Al Barbarino</dc:creator>
				
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		<description><![CDATA[<p>Though it still makes up just two percent of the Manhattan office market’s total inventory, a number of significant deals have caused a surge in the education sector’s Manhattan footprint.</p>
<p>A report from<strong> CBRE</strong> attributes the 47 percent jump in office space leased by the sector – between 2005 and November 2012 – to a growing residential population, increases in enrollment at universities, campus expansions, greater availability and lower asking rents in sections of Midtown South and Downtown.</p>
<p><!--more--></p>
<p><a href="http://nyocommercialobserver.files.wordpress.com/2013/01/mpj043940900001.jpg"><img class="alignleft size-medium wp-image-245625" alt="MPj04394090000[1]" src="http://nyocommercialobserver.files.wordpress.com/2013/01/mpj043940900001.jpg?w=300" width="300" height="219" /></a>“The type of property that educational tenants gravitate to is not necessarily the classic glass and steel Class A property that our traditional office tenants gravitate to,” said <strong>Pamela Murphy</strong>, a senior vice president of research with the firm, in a statement accompanying the report.  “Educational tenants are occupying property that might otherwise be considered obsolete for modern office business activity.”</p>
<p>Among the largest educational office leases between 2009 and 2012 were <strong>Avenues: The World School</strong>’s 240,000-square-foot lease at <strong>259 Tenth Avenue</strong>; <strong>Leman Manhattan Preparatory School</strong>’s 204,000 square feet at <strong>25 Broadway</strong>; the <strong>City University of New York</strong>’s 198,000 square feet at <strong>555 West 57th Street</strong>, as well as its 137,000-square-foot new lease at <strong>395 Hudson Street</strong>; and <strong>Technical Career Institute</strong>’s 138,000-square-foot renewal at <strong>320 West 31st Street</strong>.</p>
<p>The conversion of office buildings to educational use and the planned development and expansion of educational institutions are expected to continue to increase the education sector’s footprint.</p>
<p>Among pending development projects is <strong>New York University</strong>’s proposed six-million-square-foot expansion into Manhattan, Brooklyn, and Governor’s Island, set to take place over the course of two decades; <strong>Columbia University</strong>’s $6.3 billion <strong>Manhattanville</strong> project, set for completion in 2015; <strong>Pace University</strong>’s new 220,000-square-foot dorm at <strong>180 Broadway</strong>, also set for 2015; and a number of other projects in the works at <strong>The New School</strong>, <strong>Fordham University</strong>, <strong>Hudson Yards</strong> and the City University of New York.</p>
<p>Lower rents in Midtown South and Downtown are especially attractive to educational institutions, especially those in pre-war space, which offers the greater discount.</p>
<p>“Recent education sector leasing activity in office buildings has focused on the Midtown South and Downtown markets,” said <strong>Bruce Surry</strong>, an executive vice president at CBRE, in the statement.</p>
<p>The data shows pre-war rents, at $52 per square foot in Midtown South and $35 per square foot Downtown, are $14 and $17 per square foot cheaper, respectively, than their post-war counterparts.</p>
<p>The industries with the greatest Manhattan footprint are FIRE (finance, insurance and real estate), Professional Services and Media, with 32 percent, 22 percent and 13 percent, respectively, of total inventory.</p>
<p>Educational Services have added 6,100 jobs – a 3.6 percent increase – year-to-date since December 2011, a separate report from <strong>Eastern Consolidated</strong> shows.</p>
]]></description>
		<content:encoded><![CDATA[<p>Though it still makes up just two percent of the Manhattan office market’s total inventory, a number of significant deals have caused a surge in the education sector’s Manhattan footprint.</p>
<p>A report from<strong> CBRE</strong> attributes the 47 percent jump in office space leased by the sector – between 2005 and November 2012 – to a growing residential population, increases in enrollment at universities, campus expansions, greater availability and lower asking rents in sections of Midtown South and Downtown.</p>
<p><!--more--></p>
<p><a href="http://nyocommercialobserver.files.wordpress.com/2013/01/mpj043940900001.jpg"><img class="alignleft size-medium wp-image-245625" alt="MPj04394090000[1]" src="http://nyocommercialobserver.files.wordpress.com/2013/01/mpj043940900001.jpg?w=300" width="300" height="219" /></a>“The type of property that educational tenants gravitate to is not necessarily the classic glass and steel Class A property that our traditional office tenants gravitate to,” said <strong>Pamela Murphy</strong>, a senior vice president of research with the firm, in a statement accompanying the report.  “Educational tenants are occupying property that might otherwise be considered obsolete for modern office business activity.”</p>
<p>Among the largest educational office leases between 2009 and 2012 were <strong>Avenues: The World School</strong>’s 240,000-square-foot lease at <strong>259 Tenth Avenue</strong>; <strong>Leman Manhattan Preparatory School</strong>’s 204,000 square feet at <strong>25 Broadway</strong>; the <strong>City University of New York</strong>’s 198,000 square feet at <strong>555 West 57th Street</strong>, as well as its 137,000-square-foot new lease at <strong>395 Hudson Street</strong>; and <strong>Technical Career Institute</strong>’s 138,000-square-foot renewal at <strong>320 West 31st Street</strong>.</p>
<p>The conversion of office buildings to educational use and the planned development and expansion of educational institutions are expected to continue to increase the education sector’s footprint.</p>
<p>Among pending development projects is <strong>New York University</strong>’s proposed six-million-square-foot expansion into Manhattan, Brooklyn, and Governor’s Island, set to take place over the course of two decades; <strong>Columbia University</strong>’s $6.3 billion <strong>Manhattanville</strong> project, set for completion in 2015; <strong>Pace University</strong>’s new 220,000-square-foot dorm at <strong>180 Broadway</strong>, also set for 2015; and a number of other projects in the works at <strong>The New School</strong>, <strong>Fordham University</strong>, <strong>Hudson Yards</strong> and the City University of New York.</p>
<p>Lower rents in Midtown South and Downtown are especially attractive to educational institutions, especially those in pre-war space, which offers the greater discount.</p>
<p>“Recent education sector leasing activity in office buildings has focused on the Midtown South and Downtown markets,” said <strong>Bruce Surry</strong>, an executive vice president at CBRE, in the statement.</p>
<p>The data shows pre-war rents, at $52 per square foot in Midtown South and $35 per square foot Downtown, are $14 and $17 per square foot cheaper, respectively, than their post-war counterparts.</p>
<p>The industries with the greatest Manhattan footprint are FIRE (finance, insurance and real estate), Professional Services and Media, with 32 percent, 22 percent and 13 percent, respectively, of total inventory.</p>
<p>Educational Services have added 6,100 jobs – a 3.6 percent increase – year-to-date since December 2011, a separate report from <strong>Eastern Consolidated</strong> shows.</p>
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