Like the westward expansion that gripped the nation during the early to mid-1800′s, the expansion of Midtown Manhattan offers the city’s commercial real estate pioneers a modern crack at manifest destiny.
The trajectory of Midtown’s new building stock over the last seven decades tells a story of westward expansion that most recently struck Midtown West with the Hudson Yards development project.
“Hudson Yards really is the last frontier,” said James Delmonte, principal and vice president of research at Avison Young. “Firms are looking for newer product and larger floor plates, largely because there really is no available land on the east side.”
Industry veteran John Ryan III is the latest hire in Canadian real estate firm Avison Young’s mission to expand its footprint across New York City and the United States.
As Principal of the firm’s New York City office, Mr. Ryan will harness his 23 years of experience in tenant and landlord representation, providing brokerage services for key clients.
“I am thrilled by the opportunity to join Avison Young,” Mr. Ryan said, in a prepared statement. “The positive trajectory of Avison Young’s growth nationally, as well as in the New York City market, where the firm has established a high-quality reputation in a relatively short period of time, has been very exciting to watch.”
Stat of the Week
Mega deals rule the commercial real estate market and the trade papers, as everyone in the industry wants to know where the latest big block of space was leased and who will take down the next one.
The market saw its share of deals that were 100,000 square feet and more in 2012, just slightly off of 2011’s pace—53 versus 56, respectively. It is always great to read about the UBS-type 890,000-square-foot renewals and expansions and the Microsoft-like 204,000-square-foot deals, but based on the number of transactions, these household names account for merely 3 percent of the leasing activity in any given year.
Everyone wants to operate a business in New York City. Companies from around the world travel to the Big Apple to expand their presence in the global market by staking out space here.
While the costs of operating a business in the city and in the region can be astronomical, the rewards can make it well worth it. So despite the challenges, each year a number of financial institutions from around the globe decide that it’s time to expand in New York in order to capitalize on companies’ desires to open shop or expand their operations here. As 2012 draws to a close, a number of new entrants from regional and national banks are elbowing in to gain market share in the New York tristate area by offering financing for commercial real estate. That means new hires.
With a recently obtained mortgage and other two rumored to come next, Vornado Realty seems close to obtaining over $1 billion in loans on Midtown properties from some of the biggest players on the market.
The German Bank Landesbank Baden-Württemberg has recently provided $98 million of refinancing on 435 Seventh Avenue, at the corner with 34th Street. The 43,000-square-foot building is fully leased to the Swedish retailer H&M. Vornado Realty might now use part of the proceeds of the new loan to retire a $52 million mortgage provided in 2009 by HSBC Holdings.
Nearly 700 top-echelon corporate real estate executives and service providers, together with members of the press, celebrated the city at the 2012 CoreNet Global NYC Chapter Annual Dinner at the Museum of Natural History on March 7.
Is he the most prolific attorney in the city you’ve never heard about?
Still, it’s possible to lose track of just how many deals Fried Frank partner Meyer Last inked in 2011. Call it the Jon Mechanic effect.
Construction at 3 World Trade Center could be capped at seven floors if developer Larry Silverstein can’t find enough tenants to pre-lease the tower’s first ten floors, Crain’s New York reported.
Credit Agricole has renewed approximately 350,000 square feet at 1301 Avenue of the Americas in one of the largest leases to get done in the second half of 2011.
2011The Suburban Report
Connecticut Governor Dannel Malloy wasted little time in locking in four of the five companies he promised would bring the state more jobs under his so-called “First Five” plan, an initiative launched this year with the intention of luring new companies to the Constitution State with incentives.
As Wall Street continues to swagger back from the brink, once again enjoying outsized profits and sneering at federal regulators, it means good news for at least one group of New Yorkers: landlords.
As The Journal reports today, no fewer than eight major banks are each looking for at least 500,000 square feet of office space in the city. They are hunting for bargains as much as anything, taking advantage of lower rents while uncertain of their own futures and that of the economy: