Year in Real Estate
Just when New York’s traditional geographic dividing lines were beginning to seem quaint, Hurricane Sandy made landfall and brought them back to light.
Downtown, which over the years had become harder and harder to distinguish from uptown, was plunged into darkness, sending the relatively young and vaguely creative well above 14th Street nosebleed territory in search of power. Only the Brooklyn side of the Williamsburg Bridge stayed illuminated, a stark metaphor for the borough’s slow transformation into a contender.
But in commercial real estate, boundaries continued to disappear. In January, Condé Nast expanded its 1.05-million-square-foot lease at 1 World Trade Center by 138,773 square feet, helping lower Manhattan shed its stodgy finance-centric reputation and prompting slight panic among the owners of Midtown media canteens like Michael’s.
Stat of the Week
44.6 percent—that’s the percentage of leasing transactions (by square footage) that were in the tech/advertising/media/information (TAMI) fields in Midtown South during the year to date.
The average size of those TAMI deals was rather small, at just over 26,000 square feet, and ranged from leases such as Havas, with 226,000 square feet, down to Speed Media, with just under 2,000 square feet. But we think TAMI has legs in Midtown South, due to the variety of firms taking space—it’s not just one particular segment of these creative fields.
Lease of the Week
On the first day of March, Havas chief executive officer David Jones joined a conference call and webcast with the press to announce his company’s 2011 financial results.
For Havas, a French marketing services group owned by billionaire Vincent Bolloré, the year was a good one. Its revenue grew 5.4 percent to $2.2 billion, 23 percent of which came from digital and social media activity.
Then, the English businessman told the media and, in effect, the world that beginning on Sept. 1, Havas would be rebranding Euro RSCG, the largest firm in Havas’s portfolio, as Havas Worldwide.
Global marketing and communications company Omnicom Group has taken an additional floor at 195 Broadway, growing the firm’s footprint to 260,000 square feet inside L&L Holding Company co-owned building, The Commercial Observer has learned.
The advertising firm will be taking a full floor, at approximately 39,347 square feet, at 195 Broadway.
Global French advertising company Havas Group has finalized a deal to take 260,000 square feet at 200 and 205 Hudson Street, creating a NYC “campus” for the firm, it was announced today.
Havas is in talks to move a portion of its U.S. advertising operations into 200 Hudson Street, several sources familiar with the transaction told The Commercial Observer.
The French company, which is one of the world’s largest advertising firms, would take approximately 150,000 square feet in the deal, the sources said.