Market Reports

First Three Quarters Outpace Entire Previous Year in Midtown South

Midtown South Map

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. Read More

In the Office

New CBRE Offices Showcase Latest Layout Trends

CBRE Tokyo

After CBRE started the process of leasing 20 new offices for its staff and outfitting them with employee-friendly features like concierge service, flexible work stations and new artwork, the company began a series of surveys to document its employees’ before-and-after responses to the new digs, the company announced this morning.

Professionals at the 44,000-employee, 350-office real estate firm welcomed the new digs, despite the smaller footprints at many of the locations, and CBRE’s two-year push to implement a new office strategy in its offices, entitled “Workplace360,” sheds light on the changing nature of workspaces worldwide, company officials said. Read More

Manhattan Market Report

CBRE Report: Manhattan Office Market on Pace for Record Year

Manhattan Office Market

After a first half of 2014 with 15.5 million square feet of leasing activity, the Manhattan office market is maintaining a pace that could net the most new leasing since 2000, according to new data released by CBRE today.

The Downtown market in particular boomed with vacant office space blocks of 250,000 square feet or greater falling from 10 at the start of the year to five in the new report, but leases, asking rents and absorption rates increased over figures from last year in Midtown, Midtown South and Downtown. Read More

Lease Beat

Veracen Partners Among Pack of New Leases at 250 West 55th Street

250 West 55th Street. (Credit: New York Yimby)

Veracen Partners is among a set of several new tenants to take space at Boston Properties250 West 55th Street, signing a 10-year, 11,263-square-foot lease for a portion of the 16th floor at the 38-story tower.

CBRE, which represented the landlord, announced the lease concurrently with a 7,196-square-foot deal with RTW Investments & LifeSci Capital and a 4,806-square-foot Coltrane Asset Management lease. All three firms will occupy the 16th floor of the building, which features new high-end prebuilts designed by Gensler, with 10-foot ceilings and perimeter offices. Read More

Lease Beat

Platinum Partners Inks 250 West 55th Street Lease

250 West 55th Street. (Credit: Boston Properties)

Platinum Partners, a hedge fund with more than $1 billion in assets under management, has signed a 10-year lease for the entire 23,274-square-foot 14th floor of Boston Properties250 West 55th Street, Commercial Observer has learned.

The tenant, currently headquartered at Carnegie Hall Tower, will pay rent starting in the mid-$70s per square foot, according to data from CompStak. The terms are similar to the recent deal for Modern Bank, which Commercial Observer first reported last month. Read More

Lease Beat

Revlon Relocates to 1 New York Plaza

One_New_York_Plaza

Revlon has reportedly signed a 15-year lease for the top two floors at Brookfield Office Properties1 New York Plaza in a relocation from 237 Park Avenue, joining a flight of value-seeking firms to recently head Downtown.

The 91,194-square-foot lease covers floors 49 and 50, the latter of which is a glass box-style penthouse with 15-foot ceilings, according to the New York Post, which first reported the deal earlier this week and noted that former occupant Goldman Sachs removed columns from the space to accommodate their trading floor. Read More

Lease Beat

Modern Bank Relocating to 250 West 55th Street

250 West 55th Street. (Credit: Boston Properties)

Modern Bank has inked a 13,200-square-foot lease on the 15th floor of Boston Properties250 West 55th Street in a relocation from 667 Madison Avenue, sources said. 

The one-million-square-foot, 38-story office tower, designed by SOM, completed last year and conceived as a contemporary take on the firm’s mid-century Lever House, has attracted a string of tenants relocating from buildings deemed impressive in their own right.

Read More

Lease Beat

Lands’ End Inks 1407 Broadway Office Lease

1407 Broadway

Retailer Lands’ End has signed a 10-year, 13,729-square-foot lease for the entire 27th floor at 1407 Broadway. The tenant will relocate to The Lightstone Group-owned property from 530 Seventh Avenue.

 “The excellent central location as well as the tower floor’s wonderful light and window line were certainly a huge draw,” said Amanda Bokman, senior vice president of CBRE, in a prepared statement. Read More

Winter Storm

Are Winter Storms Disrupting Real Estate Business in NYC? [Updated]

Another Winter Storm Bears Down On Northeast

It has been just brutal outside, a mess of snow, sleet, rain, ice and slush requiring acrobatic skills to jump from snow mound to snow mound.

While surfaces are icy, subway service has been interrupted, states of emergency have been declared and people are cold, has the wintry mix impacted the business of real estate in New York City?

Commercial Observer checked in with some real estate folks to find out.  Read More

Assignments

CBRE Named Exclusive Agent at 1407 Broadway

1407 Broadway

CBRE has been named the exclusive leasing agent at 1407 Broadway, The Commercial Observer has learned. Peter Turchin will lead the leasing team at the Lightstone Group’s 1-million-square-foot Midtown office building.

In addition to naming a new leasing team, ownership will soon begin repositioning the property, including upgrading the building’s lobby and retail façade—all with a view toward attracting a broader tenant base. Read More

The Plan

Check Out New Space at 250 West 55th Street

1CO3000A0820

Boston Properties’ 250 West 55th Street is set to come online early next month with key tenants Morrison & Foerster and Kaye Scholer having already snapped up close to half of the building. CBRE, one of the lead leasing agents at the building, is already planning for tenant expansion, offering short-term (five- to seven-year) leases for a variety of prebuilt spaces on the building’s 25th floor.

Ranging from approximately 3,200 square feet to 5,700 square feet, each space is flexibly designed to cater to a range of tenants, including law and financial services. Though CBRE has yet to begin marketing the space officially, the leasing team is already in discussions with one potential financial services tenant.

Peter Turchin, executive vice president and landlord representative, spoke to the The Commercial Observer last week about the building’s 25th floor, where work is being completed, and what opportunities abound at 250 West 55th Street. “We’re just finishing up the units right now,” said Mr. Turchin. “These will be completed in the next week to two weeks and they’re going to come online the first week after Labor Day.” Read More

Lease Beat

National Futures Association Relocating to One New York Plaza in First Post-Sandy Lease

One New York Plaza.

The National Futures Association, the self-regulatory organization for the U.S. derivatives industry, is relocating to One New York Plaza from 120 Broadway after signing a 10-year, 36,000-square-foot lease–the first for the property since it sustained damage during Hurricane Sandy. Asking rents were $49 per square foot.

“As a self-regulatory body, our responsibilities and headcount were increasing,” said Karen Weurtz, spokesperson for the NFA. “Our lease was terminating and we needed more space; this was the time to do it.” Read More

1Q13

Which Way is Up: Manhattan’s Market Boundaries are Beginning to Blur

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From the outside, 222 Broadway fits the stereotype of the Downtown financial office tower.

But when Bank of America downsized, leaving roughly 250,000 square feet of space vacant, a series of tours guided by its new owner, L&L Holdings, quickly blasted that stereotype away.

Condé Nast committed to 80,000 square feet at the tower in early March. WeWork, which provides collaborative workspace for tech and media companies, was next in line. Read More

Lease Beat

SAE Institute Leases 27,000 Square Feet At Surging 218 West 18th Street

218 West 18th Street (Photo Courtesy of Atlas Capital)

SAE Institute (f.k.a. the School of Audio Engineering) signed for a 10-year relocation and expansion that will bring it from 1293 Broadway to 27,000 square feet at 218 West 18th Street in Chelsea, The Commercial Observer has learned.

CBRE‘s Stephen Siegel, Gregg Rothkin and Peter Turchin, along with Zak Snider and Ben Fastenberg  represented the landlord, Atlas Capital Group and GreenOak Real Estate. A team from Realty Insight Group and Zimmer Real Estate Services led by RIG President Neil Schoor represented the tenant. Read More

Midtown

The Incredible Shrinking Tenant

midtown_final_joelkimmel

Earlier this year, approximately 150,000 square feet opened at the Midtown office tower 399 Park Avenue when the law firm WilmerHale, a tenant in the building, left to relocate to Lower Manhattan.

The property, a 1.75-million-square-foot skyscraper owned by the large commercial owner Boston Properties, is home to the global headquarters of Citibank and is widely considered one of the finest office buildings along Park Avenue, an exclusive and highly desirable corridor in Midtown.

Boston Properties had found takers for the building even in the worst of times, filling the few hundred thousand square feet that suddenly became available in 2008 when Lehman Brothers, a former tenant, collapsed and sparked the financial crisis.

Fast-forward to 2012, a market several years removed from the depths of the recession, and this time around, Boston Properties wasn’t taking any chances. According to the leasing agent at the property, Peter Turchin, an executive at the real estate services firm CBRE, Boston Properties quickly switched to the leasing strategy du jour: finding takers for the space one floor at a time rather than waiting for one big user to fill a large portion or all of the space. Read More