Office leasing activity this year in the tight Midtown South market has already bested last year’s total by more than 2 million square feet, according to a new quarterly report released this morning by CBRE.
Transactions like Google’s 178,065-square-foot lease at 85 10th Avenue, Yelp’s 152,232-square-foot deal at 11 Madison Avenue and Squarespace’s 93,517-square-foot lease at 225 Varick Street have netted a year-to-date total of 5.16 million square feet for 2014 after last year’s leasing totaled only 3.06 million square feet in the market composed of six neighborhoods bounded by Chelsea and Madison Square on the north and Soho and Hudson Square on the south, the report says.
Tech, business and design educator General Assembly has expanded at 915 Broadway, with the addition of 13,386 square feet on the entire second floor.
General Assembly has occupied the full fourth floor in the building since early 2012 and then added the third floor in March 2013. The most recent addition of new space is the result of a recent Series-C funding of $35 million, ABS Partners Real Estate said in an announcement about the expansion, and brings General Assembly’s total square footage to 40,158 square feet. Since 2012, ABS Partners Real Estate and a group of investors have owned the building.
Science and mathematics education nonprofit Math for America will move its headquarters 500 feet west to ABS Partners Real Estate‘s 915 Broadway on the corner of 21st Street in the Flatiron District through a 11-year, 21,536-square-foot lease, ABS Partners announced this morning.
The nonprofit that assists educators and institutions will relocate from 160 Fifth Avenue to a space on the 16th and 17th floors of ABS Partners’ 20-story building with asking rents of $80 per square foot, company officials said.
With 100 tenants either moved out or in the process of moving out of 2 West 47th Street in Midtown’s Diamond District, business owners and brokers in the area are speculating about what will become of the building with few definitive answers available.
As whispers swirl around the district about a potential hotel on the building’s footprint via a lot assemblage by Extell Development Company, nobody seems to know for sure what will become of the building that once housed ABS Partners Real Estate’s jewelry exchange on the ground floor and top jewelry designers like Sasha Primak in the floors above.
The founder of a network of tech-savvy real estate websites is leaving his current post as the director of the creative and start-up advisory division at ABS Partners Real Estate, Commercial Observer has learned.
Ashkán Zandieh, 31, who has spent more than two years at ABS Partners told Commercial Observer he’s elected to focus full-time on Re:Tech, which connects real estate tech start-ups with potential investors and advice for growing as companies while also holding interactive demonstrations and networking events.
Art in Real Estate
Ira Fishman is walking around his office with carpet and base molding samples in his hand. EVO Real Estate Group President Dana Moskowitz wants his input on the color scheme for the company’s new offices. He says Ms. Moskowitz has better taste than him, but she wants him to weigh in on the color scheme anyway. He is her father after all.
In the end, he agrees with Ms. Moskowitz: White walls and light gray tones (including gray base) with blue accents are the way to go. Read More
ABS Partners Real Estate has kicked off a curated, rotating pop art program for the lobbies of its commercial buildings, Commercial Observer has learned.
Techonomy Media, a digital publisher and conference producer operating out of a co-working space with its investor, Simulmedia, has opened its own offices on West 22nd Street.
As a result of its recent growth and future strategic plans, Techonomy was looking for a space in the heart of Silicon Alley, which the company said that it found at ABS Partners Real Estate‘s 20 West 22nd Street.
Even as the construction process commences on a marquee Roosevelt Island technology project, some tech companies are uncertain about how the industry will fare now that Mayor Michael Bloomberg, a staunch advocate for tech, is out of office.
As Cornell NYC Tech, the engineering school slated for Roosevelt Island, makes its way through the development process and the city welcomes a new administration, it prompts a question: Will the sustainable applied science and engineering campus—and tech in general—get the same level of attention from Mayor Bill de Blasio as it did from his predecessor, Mr. Bloomberg?
2013 Owners Magazine
Before he got involved with a nascent industry on the upswing, Ashkán Zandieh gave a boost to a business in its death throes.
Mr. Zandieh, 30, worked for Universal Republic, at the time an imprint of the giant Universal Music Group label. His role in a band while an undergraduate at Hofstra sparked his interest in the music biz even as digital piracy upended it.
“I went to school full-time and worked at Universal full-time,” Mr. Zandieh said in an interview outside of a Williamsburg coffee shop. “I didn’t sleep a lot.”
This year’s 2013 Owners Magazine includes 42 questionnaires and profiles from New York City’s most active landlords weighing in on politics, culture, and real estate. Read More
Mergers and Acquisitions
Alan Friedman has joined ABS Partners Real Estate as senior managing director of the brokerage division. Mr. Friedman comes to the firm from CBRE, where he spent 12 years as an office tenant representative.
The new hire comes two months after ABS merged with PBS Real Estate.
ABS Partners Real Estate and PBS Real Estate have merged, it was announced yesterday. The news follows the announcement earlier this week that Laura Pomerantz, founding partner of PBS Real Estate, has launched her own eponymous firm.
The two parties began talking about a potential merger in early February, Gregg Schenker, co-managing partner and president of ABS Partners, told The Commercial Observer. PBS Real Estate employees moved to ABS Partners’ Union Square office yesterday.
“The ability to socialize and collaborate is one of the founding blocks of creating a tech community,” writes Ashkán Zandieh, director of the creative and start-up advisory division at ABS Partners Real Estate, in the latest edition of his quarter TechStarter report. Mr. Zandieh has been involved with the technology sector for seven years. He created and sold a start-up, has advised several fledgling companies and tracked the field’s real estate activity for the past year. From ABS Partner’s Union Square area office, Mr. Zandieh is well-positioned to observe and dissect the red hot Midtown South tech real estate market and, if he looks south, the growth of the Financial District as a tech and new media contender.
Mr Zandieh spoke by phone with The Commercial Observer.
The Commercial Observer: How is the tech-fueled Midtown South commercial real estate market holding up?
Mr. Zandieh: The average asking rental price per square foot increased from an estimated $38 per-square-foot in 2011 and 2012 to nearly $60 per square foot for Class B buildings in Midtown South in the first quarter of 2013. What’s pretty interesting is that we’re seeing a Class B transition–there’s a fuzzy line between Class B and Class C.
So young companies are still drawn to, and able to afford, the neighborhood?
A lot of the start-ups I’m working with now are down in Soho and expanding by 20 or 30 employees. They’re moving out of Soho and to NoMad, where they can get larger floor plates. By NoMad, I mean 23rd Street to 28th Street between Park and Seventh Avenues.
GNC signed a 10-year lease (with a five-year option) for 2,100 square feet at 302 Canal Street, The Commercial Observer has learned.
It will be the health and wellness retailer’s 47th Manhattan location. The store will be evenly divided between a ground floor and basement space. The previous tenant was a local shoe and apparel store.
RKF‘s Ariel Schuster and Greg Covey represented the tenant. ABS Partners Real Estate‘s Mark Tergesen represented the landlord, Charbern Management Group. GNC’s Rory McCutcheon worked in-house on the deal.