Tiger Global Management Joins Triple Digit Rent Club
Tiger Global Management is the latest to break the triple digit threshold for commercial space in the city.
Following Ruane, Cunniff & Goldfarb Inc., which signed a deal in late May, the investment management firm will be taking a massive 32,000-square-foot space in the prized Plaza District 9 West 57th Street. The building, owned by Sheldon Solow, is known for its breathtaking views and the ability to demand close to $200 per square foot.
Tiger Global Management’s office will span the entire 35th floor of the 50-story building, putting it on the lower end of the rent scale that starts at $175 per square foot for the 32nd floor with incremental increases to the top.
“Unlike having developable land and sites, like at Hudson Yards and Downtown, there’s a limited availability of Central Park-view tower space,” noted Scott Panzer, vice chairman at Jones Lang LaSalle in a recent sit down with The Commercial Observer. “So, similar to how the residential developers are recording record sales prices for residential towers with park views, the commercial buildings that [are] available to those same tenants are booming.”
Since Bank of America left the building, Mr. Panzer and JLL have taken over leasing activity and has brought in several tenants to fill the vacant spaces. Recently named vice chairman, CBRE’s own super-broker Paul Amrich was on the opposite side of the table representing Tiger Global Management in the transaction.
The deal comes in light of the recent surge of triple digit leases in the city. Jonathan Mazur, director of research at Cushman & Wakefield, noted that there have been over three dozen $100 per square foot or higher deals within 2013. He notes that the figure, excluding the peak before the recession, remains above average of the last ten years.