Lease Beat

State Street Consolidates at 1290 Avenue of the Americas

1290aofa

State Street Bank has signed a 10-year lease for 105,951 square feet at Vornado Realty Trust’s 1290 Avenue of the Americas, a source familiar with negotiations confirmed with The Commercial Observer.

State Street will take space formerly occupied by Microsoft, which opted to relocate to 11 Times Square, as The Commercial Observer reported late last year. The tech giant’s 230,000-square-foot lease was the third largest deal of 2012. Read More

Development

Midtown’s Westward Expansion Offers a Modern Crack at Manifest Destiny

wagon

Like the westward expansion that gripped the nation during the early to mid-1800’s, the expansion of Midtown Manhattan offers the city’s commercial real estate pioneers a modern crack at manifest destiny.

The trajectory of Midtown’s new building stock over the last seven decades tells a story of westward expansion that most recently struck Midtown West with the Hudson Yards development project.

“Hudson Yards really is the last frontier,” said James Delmonte, principal and vice president of research at Avison Young.  “Firms are looking for newer product and larger floor plates, largely because there really is no available land on the east side.” Read More

Lease Beat

Senor Frogs Hops Into Times Square

Courtesy of SpeakingJose

Senor Frog’s is set on opening a 21,000-square-foot flagship location in New York.

The Mexican-themed bar and grill will be opening their most northern location to date. The chain, known for its bar scene and burritos, has set up locations in dozens of tourist destinations in Las Vegas, Orlando, Myrtle Beach and throughout the Caribbean and Latin America. Read More

Lease Beat

Off The Wall Frozen Yogurt Continues Four-Store Manhattan Expansion

Photo Courtesy of Off The Wall

Off The Wall Frozen Yogurt recently procured four Manhattan leases with the help of RKF Vice President Joshua Strauss and Director Zach Winkler.

The chain, which originated in Cedarhurst, NY, opened its first city outpost last spring at 1053 Second Avenue between 55th and 56th Streets. (RKF’s Michael Worthman assisted with that deal) That 2,050-square-foot shop was joined last week by a 2,000-square-foot location at 248 West 23rd Street in Chelsea.

A 1,700-square-foot store is due to open at 4 West 14th Street next month, followed by a 2,500-square-foot outpost at 11 Times Square. Read More

4Q12

Weathering the Storm: 4th Quarter Leasing Saw Improvements

4Q12 for web

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Times of change and uncertainty are always worrisome for investors—fear takes hold, spending is called into question and valuations become unpredictable.

Mix an election season with the impending threat of a potentially devastating fiscal cliff, then throw in a destructive, rogue tropical storm named Sandy, and you’ve created an environment that is not conducive to a stellar business quarter for the commercial market.

However, thanks to tax law-motivated sales and retail—as well as a handful of big end-of-year leasing deals—the fourth quarter ended on a relatively positive note, despite a slowdown in leasing activity. Read More

Lease Beat

Microsoft Inks 3rd Biggest Deal of 2012

microsoft_logo1

Months of negotiations between SPJ Properties and Microsoft have finally paid off, with the tech giant signing a 230,000-square-foot lease at its new Midtown headquarters at 11 Times Square – and solidifying one of the top leasing deals of the year.

The company eyed the new space for months, as rumors swirled it would be vacating Vornado’s 1290 Avenue of the Americas, and last month transaction is the third biggest non-renewal leasing transaction of 2012. Read More

Lease Beat

Negotiations Over Signage Delay Microsoft Deal

microsoft_logo

Negotiations over outdoor signage at 11 Times Square, among other issues, has delayed a deal between SPJ Properties and Microsoft expected today, sources told The Commercial Observer.

After eyeing the space for months, the company was shuffling papers around this week with owner SPJ Properties to get the deal completed; but the signing of a letter of intent, which sources said was scheduled to happen today, likely won’t be completed until after Thanksgiving, said people familiar with the deal.

The 16-year lease is for 260,000 square feet across floors four through 11, at a rate in the low $60’s, a broker who reviewed a preliminary version of the lease said. Read More

Midtown

What’s in a Name: Garment District, Chelsea North or Times Square South?

Times Square South Boundaries.

It’s been commonly known as the Garment District, but with the recent surge of tech industries moving into the area, some are calling Times Square South by a new name: Chelsea North. Confused?

“The market has changed dramatically,” said Diana Gaines, a senior director at Cushman & Wakefield, of Times Square South. “The area called Times Square South has traditionally been known as the Garment Center. In the last few years, this has become less and less the norm.” Read More

Postings

Times Square South Feeling Tech Boom

Co Page 22 Postings

» When word began to trickle down last week that a confluence of lingering domestic and international worries were behind a sluggish third quarter of office leasing, few analysts were surprised. Indeed, amid questions surrounding the international debt crises, this country’s upcoming presidential elections and a fog of property tax and regulatory issues, rather than making big moves, many of the city’s largest corporate tenants have chosen to do nothing at all. But in Times Square South, Midtown’s third-largest submarket, tech startups and creative professionals continued to flock to the area’s high-ceilinged, big-windowed stock of office buildings, making it one of the few neighborhoods to show third-quarter improvement. Ken McCarthy, senior economist at Cushman & Wakefield, reviewed the neighborhood’s third-quarter activity with The Commercial Observer and explained why Times Square South did so well.   Read More

3Q12

3Q12 Data Reveals Lingering Uncertainty

3Q12 for web

There was a time when it seemed certain 11 Times Square would command some of the highest rents in city.

The building, which was developed by a venture between SJP Properties and its equity partner Prudential, was finished in 2010. As one of the newest buildings in Midtown, it is widely considered state-of-the-art, with many of the bells and whistles that tenants are supposed to be willing to pay a premium for, such as towering ceiling heights, LEED-certified efficient systems, a floor-to-ceiling glass façade that offers prodigious light and few structural columns to impede the efficiency of its spaces.

Entering the market at a tough juncture during the recession, SJP Properties nonetheless appeared to take a hard line on rents, and rightfully so: the building cost more than $1 billion to develop. According to several sources familiar with the property and its leasing history, the landlord held fast to projections it had set before the downturn—rents in the $80s per square foot and beyond. Read More

Lease Beat

Talk About Windows! Microsoft Poised to Sign 400,000-Square-Foot Lease at 11 Times Square

Microsofties.

Steven J. Pozycki has reeled in his white whale as one of the most sought after tenants in the entire city has landed at one of its most troubled office towers. According to numerous sources, Microsoft is poised to sign a long-term lease for 400,000 square feet at 11 Times Square, the office tower Mr. Pozycki’s New Jersey-based SJP Properties built just as the real estate bubble was bursting.

For months, the Seattle-based software company has been looking at new offices in New York as it mulled whether or not to leave its current home at 1290 Avenue of the Americas. Microsoft had been looking at space across Manhattan, but it seemed to have a special affinity for the West Side, having strongly considered Mort Zuckerman‘s swiftly rising 250 West 55th Street. For a time, Microsoft appeared interested in 11 Times Square but its focus faded in favor of other opportunities, until a last minute pitch by SJP brought the building back into the running and helped seal the deal. Read More

Lease Beat

Microsoft Bumped From 250 West 55th Street

11 Times Square

Microsoft has been bumped from 250 West 55th Street, leaving it with two likely space possibilities: a renewal deal at its current home at 1290 Avenue of the Americas or a relocation to 11 Times Square several sources familiar with the company say.

The company had been in advanced talks to take space at the Read More

Lease Beat

SJP Reaches Out To Microsoft In Last Ditch Bid For 11 Times Square Deal

11 Times Square

SJP Properties has reached out to Microsoft in a last ditch bid to bring the software and computing corporation to 11 Times Square sources say.

Microsoft is in the market for between 200,000 and 250,000 square feet and in recent weeks had narrowed its search to two locations, 1290 Avenue of the Americas, where it currently bases its New York offices, and 250 West 55th Street, a new skyscraper rising on Eighth Avenue. Read More

Lease Beat

Chadbourne To Take Space At 1301 6th

1301 Avenue of the Americas

Chadbourne & Parke LLP is going forward with a deal to move its headquarters to 1301 Avenue of the Americas, several sources have told The Commercial Observer.

The law firm had been shopping around the Manhattan market for months in search of a new home, coming close to leases at One World Trade Center and 230 Park Avenue only to pull away and resume its search. Read More