Despite upticks in rent prices and decreased availability rates in both Class A and Class B properties in Midtown, the area moved less real estate in terms of raw square footage in the third quarter, according to the latest quarterly Manhattan office report released last week by Cresa New York.
The area between approximately 66th and 42nd Streets that the firm refers to as “Midtown North” totaled 3.8 million square feet of leasing transactions for the quarter, down from 4.9 million square feet in deals that were leased in the second quarter, 4.8 million square feet in the first quarter and 6.6 million square feet in the last quarter of 2013, the report says.
Iconic retailer Saks Fifth Avenue will open a store at Brookfield Place, its second in New York City, as its owner, Hudson’s Bay Company (HBC), plans to consolidate its New York City offices and relocate to the complex.
First reported by Real Estate Weekly, HBC has signed an approximately 20-year lease for roughly 400,000 square feet of office Read More
HPH Restaurant Group’s 37,000-square foot “Le District” at Brookfield Place will open in stages starting in November of this year, and experiential design firm ICRAVE is working with the restaurateurs to complete the French-inspired culinary destination with four distinct sections. The designers and owners have installed several HVAC systems in the location, along with conduits and drywall, representatives for ICRAVE, the firm that previously conceived Jet Blue’s Terminal 5 at John F. Kennedy Airport and arrangements for several popular restaurants, told Commercial Observer. Chef Jordi Valles, formerly of St. Regis of Bal Harbour Resort, will lead the food options at the space with views of the North Cove Marina and the Statue of Liberty.
The latest quarterly Manhattan office rent report from commercial lease database CompStak details a “bullish” market where new Manhattan office leases represented more than 66 percent of new leasing activity this year, versus only 54 percent in 2013.
Despite a $2.07-per-square-foot decline in Midtown South rents to $52.62, analysts pronounced all three markets healthy, citing large-scale leases at Brookfield Place and the World Trade Center, as well as notable signings like Yelp‘s 152,232-square-foot deal at 11 Madison Avenue.
Jane Street Capital has signed a 15-year lease for 114,000 square feet at 250 Vesey Street, sources confirmed with Commercial Observer.
The lease covers a portion of the fourth floor and the entire fifth and sixth floors of the building. The trading firm will relocate to Brookfield Place from One Liberty Plaza, another Brookfield property. Jane Street will pay rent in the mid-$50s per square foot, one source said.
Saks Fifth Avenue is planning two locations in Lower Manhattan, The Wall Street Journal reported. The expansion would include a department store and Saks Off Fifth outlet, along with a potential 400,000 square-foot office space for the department store’s parent company, Hudson’s Bay Co.
The possible site of the department store is Brookfield Place, while the outlet and office-space headquarters may be located at Brookfield’s One Liberty Plaza building, according to the Journal.
Bank of New York Mellon Corp. signed a 20-year, 350,000-square-foot lease to move its sought-after headquarters to 225 Liberty Street at Brookfield Place in Lower Manhattan, the bank and its new landlord, Brookfield Office Properties, announced today.
The news of the seven-floor lease ends a bidding fight between New York and New Jersey to attract the bank that lists $27.9 trillion in assets under custody, as bank officials said the attraction of staying in its longtime home and launching a sunlight-enhanced collaborative working space proved irresistible.
Regus, a flexible workspace provider, has closed its business center at Brookfield Place a little more than a year after signing a 16-year lease there, Commercial Observer has learned. The company moved out of the Lower Manhattan development quietly last month, the same month of its grand opening.
“Due to a number of operational issues outside our control, Regus has closed its business center in [the building previously known as 3 World Financial Center],” Regus said in a statement. “All affected customers have been relocated to other nearby Regus locations.” That number of customers was few, said Andrew Brown, group communications director for Regus.
The owners of upscale restaurant chain P.J. Clarke’s have slapped Brookfield Office Properties subsidiary WFP Retail Co. with a $40 million suit alleging the Brookfield Place developer has driven down its business by 50 percent and tried to force the eatery out of its location at 4 World Financial Center.
Restaurateurs Phil Scotti and Arnold Penner, who, along with a group of investors, own the seven-location steaks and chops chain that started at East 55th Street and Third Avenue in 1884, allege their landlord has purposefully erected sidewalk sheds that block views of the Hudson River and the Statue of Liberty, closed off escalators leading to the restaurant to prevent foot traffic and made life miserable for customers and staff with leaks and noises stemming from constant construction at the site.
It would seem that Ed Hogan’s job at Brookfield Place is nearly complete, but the national director of retail leasing for Brookfield Office Properties told Commercial Observer last week that a new phase is just beginning.
The 35,000-square-foot, 600-seat food hall Hudson Eats is open and nearly leased up, with counters taken by Blue Ribbon Sushi, Sprinkles cupcakes and others. The 25,000-square-foot (plus 10,000-square-foot outdoor area) Le District marketplace is fully leased by HPH restaurant group partners Peter Poulakakos and Paul Lamas. And the 250,000-square-foot retail center is 90 percent spoken for.
Mitch Rudin will leave Brookfield Office Properties at the end of the month, according to a statement made by the company today.
Mr. Rudin has served as the president and chief executive of Brookfield’s U.S. commercial operations but was faced with a diminished role following the consolidation of Brookfield Office Properties into Brookfield Property Partners, the company said in a statement. The Brookfield executive had played a key role in the development Brookfield Place in Lower Manhattan.
Time Inc. will relocate its headquarters to 225 Liberty Street at Brookfield Place in Lower Manhattan, the company announced today. The media conglomerate has signed a long-term lease for 700,000 square feet across six floors at the property and will move to the Brookfield Office Properties‘ development from the Time & Life Building in late 2015.
The media company evaluated relocation options in New York City and New Jersey but was persuaded by both the location of Brookfield Place and an incentive package offered by Empire State Development, according a statement by Joe Ripp, the chairman and chief executive of Time Inc.
On the Move
Bank of New York Mellon has agreed to sell its 1 Wall Street headquarters in Lower Manhattan to a joint venture led by Macklowe Properties for $585 million, according to announcement made by the financial services company today. The deal, brokered by CBRE, is expected to close in the third quarter.
The company has occupied the 50-story office tower since 1989, when Bank of New York acquired Irving Trust Company. The Bank of New York moved its headquarters to 1 Wall Street from 48 Wall Street in 1998.
With its Wall Street headquarters on the market for sale, Bank of New York Mellon has narrowed its options for relocation down to 225 Liberty Street at Brookfield Place and 70 Hudson Street in Jersey City, Bloomberg News reported.
In the event of the sale of its 1 Wall Street headquarters, BNY Mellon is expected to move at least 850 of the 1,700 employees based at that location to a new office. The remainder will move to the company’s existing offices at 101 Barclay Street, according to the report.
J. Crew, Paul Smith and Posman Books have all signed leases at Brookfield Place, leaving the retail portion of the renovated property about 85 percent leased, The Wall Street Journal reported.
Posman Books will open its fourth location in a 2,000-square-foot space at the development. The bookseller also operates shops in Grand Central Terminal, Chelsea Market and Rockefeller Center. J. Crew is expected to open a 6,859-square-foot store, while English designer Paul Smith’s location will be approximately 2,555 square feet.