Manhattan Market Report
Cornell University has signed a 15-year, 182,320-square-foot lease for its Weill Medical College at 575 Lexington Avenue, The Commercial Observer has learned. The tenant has extended its existing lease long term and expanded its space by 35,000 square feet at the base of the Plaza District tower.
Acquired by Normandy Real Estate Partners in 2012, 575 Lexington Avenue is currently undergoing an extensive repositioning and is set to be reintroduced to the market early next year following a major capital improvement plan, which includes a renovation of the building’s lobby.
An unprecedented sevenfold increase in retail property sales fueled the Manhattan commercial real estate sales market’s epic comeback in the fourth quarter – its strongest performance since 2007, according to preliminary data from Eastern Consolidated.
The hallmark quarter, with nearly $13 billion in sales volume – the strongest since record-breaking performances in 2007 (peaking at $19 billion in Q2 of 2007) – was triggered by fears of impending capital gains taxes, which had owners scrambling to unload properties before year’s end.
“This was definitely fiscal-driven growth,” said Barbara Byrne Denham, Eastern Consolidated’s chief economist. “Sellers wanted to cash out and buyers knew it, so they were eager to come to the table as well.”