November 2011: New York City Office, Retail and Industrial Market Report

We have been talking about pending new construction for the last few newsletters. Now it has finally happened. Coach is buying a new building to be constructed as part of Related development on the West Side. Brookfield is also about to start constructing the $300 million deck above the rail tracks. This will dramatically change the neighborhood from fringe to potentially the next Rockefeller Center on the West Side.

New York City Market Overview:

News of Wall Street's financial losses has pushed banks to cut 10,000 jobs and may put more sublease space on the market as they looking for ways to cut back on expenses. Some real estate insiders expect those boardroom decisions to lead to another increase in sublease space in the Manhattan market.

After a strong first half of the year, Manhattan leasing activity declined in the third quarter. But despite the slowdown, which stemmed from a dearth of mega deals, the availability rate and asking rents for the overall market continued to strengthen. Manhattan leasing volume fell from nearly 10.6 million square feet in the second quarter to 6.7 million square feet in the third quarter. The lower volume came after a strong beginning of the year, in which major tenants like Japanese financial giant Nomura Holding America and publishing powerhouse Condé Nast inked deals for 900,000 square feet and up

Average asking rents were up overall and leasing velocity, although down sharply from last quarter, was still in the traditional range. We are back to a normal market in terms of leasing velocity. We had a great first quarter and we had a great second quarter. It is a healthy market. Yet there were causes for concern. The vacancy rate for Midtown Class A properties rose by .1 points to 10.6 percent, in the last quarter there had been negative net absorption in some areas of Manhattan.

Though new development sales slowed severely in Manhattan and Brooklyn in recent months, prices are mostly on the upswing. In Manhattan, the number of sponsor sales recorded in public records declined 18 percent from the second quarter, while Brooklyn declined 34 percent. However, the median sales price per square foot in that same period rose 4 percent in Manhattan to $1,243, and 3 percent in Brooklyn to $594. As for overall sales figures, in Manhattan the median price gained 10 percent since the third quarter of 2010 to about $1.5 million, and in Brooklyn it rose 7 percent to about $600,000.

Foreclosure rates in the New York-White-Plains-Wayne, N.J. areas continued to increase in July over the same period last year, increasing 1.15 percentage points to 5.19 percent, compared with 4.04 percent in July 2010. Foreclosure activity in New York-White Plains-Wayne is lower than the national foreclosure rate, which was 3.44 percent.

November 2011 Manhattan Office Market Vacancies

Total Manhattan Class A Office vacancies stayed at 8.9 % vacant
Total New York City Office vacancy decreased from 7.8 % vacant to 7.7 % vacant.

November 2011 New York Retail Market Vacancies

Total Available New York City Retail Space For Lease increased from 0.97 million SF to 0.99 million SF.

New Developments
New York Buildings sold
NYC Buildings For Sale

New Developments

The Chelsea Art Museum located at 556 West 22nd Street is about to be replaced by Hewlett-Packard, which has special plans for the building. HP signed a 10-year lease for the entire 34,500 feet inside the three-story museum building at 556 West 22nd Street near 11th Avenue..

Drastic job and spending cuts are in the cards for 2013 for the New York City construction industry, according to a report released today by the New York Building Congress entitled "New York City Construction Outlook 2011-2013." Construction spending is expected to total $27.7 billion this year.
The average number of construction jobs will fall by 4,900 this year to 106,900 The Building Congress expects the number of jobs to plummet to 91,800, down 40,000 from the 2008 peak.

The auction of Anglo Irish Bank's troubled $9.5 billion U.S. loan portfolio has surprised some industry observers -- and spread fear among some borrowers, who worry about having new lenders take over their troubled projects. Three lenders divvied up Anglo Irish's portfolio. No one but a bank could really afford to buy the performing loans. non performers inevitably went to different buyers. Lone Star Funds acquired about $5 billion in sub- and nonperforming loans, while Wells Fargo and JPMorgan Chase acquired the remaining performing loans in separate transactions.

The Bloomberg administration's wants Roosevelt Island for a new applied science graduate school for New York University who would prefer to open one in Downtown Brooklyn at the former Metropolitan Transportation Authority headquarters at 370 Jay Street and transform it into its Center for Urban Science and Progress. "It would make Brooklyn the urban center of the universe," said Paul Horn, NYU's senior vice provost for research.

CIM Group has taken control of an extended-stay hotel tower at 47 East 34th Street. BridgeStreet Corporate Housing currently uses the building for extended-stay residences, though its $400,000-per-month lease is slated to expire on Dec. 31. CIM, which owned the defaulted note with a $93.2 million judgment, took control of the 36-story building for $54 million. IStar Financial sold CIM the $84 million senior mortgage debt this year, after a final judgment was issued against the previous owner Esplanade Capital.

TF Cornerstone is more than halfway into the $1 billion-plus development of seven buildings on the Long Island City waterfront. Despite the impressive scale of the 3 million square feet of development on 21 acres with 3,500 market-rate apartments, and the resident-friendly public park space that has replaced roads.

A massive $350 million mixed-use development project in the Bronx one of the largest private rezonings proposed for that borough in decades received the final green light by the city's Urban Land Use Review Process. The proposal calls for the creation of ten mixed-use buildings comprising 1325 housing units and 46,000 square feet of retail space that will be built in Crotona Park East and West Farms on a five-acre former industrial plot adjacent the Sheridan Expressway. The developer, Signature Urban Properties, is projecting that 663 homes would be set aside as affordable housing. The project is expected to take seven years to build.

Marty Markowitz has found a way to capitalize on his role as a power broker for development in the borough. Real estate developers and other Brooklyn businessmen currying favor with Markowitz have donated somewhere between $20 million to $45 million to his four Brooklyn charities. The charities all work to fund projects that improve the lives of Brooklyn residents and Markowitz claims there's no wrong-doing involved.

A new 181-unit luxury rental building with a retail will be built on Broadway and 77th Street with a $125 million loan funded by the issuance of bonds provided by the New York State Housing Finance Agency. The building, the Larstrand, will be developed by Friedland Properties and its representative Rose Associates. CVS has already agreed to lease part of the retail space. Thirty-seven of the units at the Larstrand will be designated as affordable.

Vornado Realty Trust and SL Green Realty are planning a transformation of the office towers at 280 Park Avenue that they acquired for almost $500 million. The group has commissioned architects KPF to oversee facade modifications to the structure.
The MTA will lease all the space in the forthcoming Fulton Street Transit Center to one company and let that firm manage it. The agency hopes to make it a shopping and dining destination. Once complete in 2014, the three-story glass and steel structure at the corner of Fulton Street and Broadway will have 70,000 square feet of retail space.

Bluerock Real Estate's high-end development known as the Charles at 1355 First Avenue between 72nd and 73rd streets, is being held up because an previous lender wants to remain in the deal even though its $5.57 million second mortgage was paid off in full. The lender, known only as Glacier 1355 First Avenue LP, won't formally cancel the mortgage obligation despite the fact that the note has been paid off.

One57, Extell Development's 90-story condominium, has some asking prices hitting $6,000 per square foot. The 1,000-foot tall property, at 157 West 57th Street between Sixth and Seventh avenues, is slated to replace 8 Spruce Street as the city's tallest residential building. Foreign buyers -- primarily from China -- have already snapped up some of the units since the developer began shopping them privately last month.

Building a hotel in New York City may be cheaper than purchasing one, as hotel property prices keep escalating. New York developers are planning to open around 50 new hotels in the city before 2013 and 68 more by 2014. Most developers would argue that it's better to open a hotel in 2013 than in 2012, but in New York City, a market that leads the cycle, next year should be good." Manhattan hotels have sold for an average of $505,157 per room so far in 2011, up from $344,799 in 2010 and $413,644 in 2009.

Cornell and Stanford is seeking $400 million for a new science graduate school on Roosevelt Island, The buildings that go well beyond the environmental standards set by Mayor Michael Bloomberg. Cornell plan calls for four acres of solar panels, 500 geothermal wells, and two major buildings that would consume no more energy than they produce. Additionally, on hot days the building would actually generate additional power and feed it into the grid.

A Hell's Kitchen development site, stalled for more than 30 years, has begun construction, for 1,258 apartments, more than half of which are affordable, a new school and stores. The $520 million four-building complex, called Gotham West, is being developed by the Gotham Organization. It will have a 31-story market-rate apartment building with 556 units, 682 affordable units across other buildings, 20 condominiums, a 670-seat school, stores and private gardens.

The NBC Sports division may move out of 30 Rockefeller Plaza to Connecticut. The company has already agreed to move to Stamford to take advantage of increased tax credits that the city has been offering to businesses. Gov. Dan Malloy of Connecticut has launched a "First Five" program, which offers tax credits and loans to the first five businesses in the state to promise to create at least 200 jobs.

Credit Suisse is planning to close down its commercial mortgage-backed securities division after it announced more layoffs. A final decision would be made within the next 30 days.

Douglaston Development plans to break ground on 3 Northside Piers in Williamsburg The $300 million project. Douglaston plans to build a 40-story rental tower where rents range from $55 to $60 per square-foot. L&M and RD will help on Douglaston's version of the tower.

Sam Zell's Equity Residential and Toll Brothers are closing in on the acquisition of 400 Park Avenue South, , with plans to build a residential tower with condominium units above rentals. The site, is currently a 20,000-square-foot parking lot owned by A&R Kalimian Realty. A&R obtained approval for a 40-story, 435-unit rental building. The price Equity Residential and Toll Brothers plan to pay for the site was not revealed, but reported to be $400/SF for each of its 420,000 buildable square feet.

Jamestown Properties and Rockwood Capital is providing equity to Murray Hill Properties and Crown Acquisitions for their $390 million purchase of 530 Fifth Avenue. Jamestown and Rockwood will be the controlling equity holders. The four firms are putting about $200 million in equity into the purchase and taking out about $220 million in debt. Crown is slated to manage leasing the retail space in the building, which is occupied by Fossil Store and LensCrafters, and will soon be home to a Syms

815 Sixth Avenue a stalled development site has hit is entering foreclosure auction Nov. 9 with a lien of more than $27.1 million. Adellco purchased the 3,823-square-foot lot at 28th Street in 2005 for $19.8 million with plans to build an ultra-slim Costas Kondyllis-designed condominium named Remy that included an Aloft hotel. However the plan stalled at the outset of the recession, and the firm defaulted on a $22 million loan, which was picked up by Lexin Capital in March of this year.

A Russian developer is accusing CIM Group of breaking a verbal agreement to work together to build on a vacant site at 33rd Street and Madison Avenue, and instead buying the $29 million mortgage and foreclose on it, a lawsuit filed in New York State Supreme Court. NMP-Group, controlled by Russian developer Natalia Pirogova, says in the suit that CIM Group used privileged information to snap up the note in August from lender Garrison Investment Group despite making promises in March 2011 to work with NMP in a joint venture to build a mixed-use tower at the site, at 172-176 Madison Avenue

Larry Silverstein, the developer of the 2.2 million-square-foot building, had previously said that if a private tenant takes the space the city's HRA commitment "may not be necessary." He and the Port Authority of New York & New Jersey, which owns the site, would prefer private tenants to fill the space, in part because they would pay more. The HRA lease starts at $56.50 per foot for its 582,000-square-foot space, about $10 to $15 less than tenants have paid in recent deals for space in nearby 7 World Trade Center. The New York City Human Resources Administration will be moving its staff into 4 World Trade Center in early 2015. The HRA will take 582,000 square feet on floors 22 to 35 in the 2.3 million-square-foot tower. The agency will be moving out of its current three locations at 180 Water Street, 2 Washington Street and 250 Church Street. Those three current locations total approximately 700,000 square feet, and about 3,000 employees will be making the move.

Local Harlem residents and business owners are speaking out against the possibility of a Walmart opening at a vacant plot of land at 125th Street and Lenox Avenue, saying that the big-box retailer would destroy the neighborhood's businesses. This is just the latest in New York's Walmart saga. Earlier this year, the store was said to be considering a Related Co. site in East New York. Despite political opposition, many New Yorkers are growing more willing to welcome the store into their city. As previously reported, retail sales to New York City residents in suburban stores like Walmart are up 10 percent from a year ago, and city dwellers are on pace to spend $215 million at the area's stores this year.

Despite low Manhattan office vacancy rates, 120 Park Avenue and 42nd Street remain empty, with some suggesting that the landlord is purposefully dragging its heels and holding out for higher rents as the market begins its recovery. The landlord is currently trading proposals for the available 114,000 square feet, with a number of tenants, asking around $85 per square foot.

Related Companies and Brookfield Office Properties each plan to begin construction at its property early next year. At Hudson Yards, at the LIRR storage area between 10th and 12th avenues and 30th and 33rd streets, Related is close to an agreement with Coach for 600,000-square-feet in the first building set to rise at the sites southeast corner. But financing for the building may not be complete until the developer can ink another tenant.

Overseas buyers make up up one third of New York City condominium purchasers and 15 percent of total purchases. That is down from the peak market of 2000, when 30 percent of total buyers were foreign. The biggest overseas buyers today are those in Russia, China, Brazil and Argentina, a change from the early years of the new millennium when they hailed from Europe, and particularly Ireland.

Hotel operator Shimmie Horn inked a 40-year renewal lease valued at $33 million for the landmarked Hotel Belleclaire at 250 West 77th Street on the Upper West Side.. Horn has operated a 242-room hotel at the highly-ornamented Emery Roth-designed building, at Broadway, since he first signed a lease in 1999. The new agreement extends the lease, which was set to expire this year, to June 2051. Included in the lease is an option to purchase the building, which can be exercised between 2026 and 2051.

A key state health planning agency approved the plans for a North Shore-LIJ emergency medical care facility on the former campus of St. Vincent's Hospital. The New York State Public Health and Health Planning Council signed off on a 140,000-square-foot 24-hour urgent care center in the O'Toole building on Seventh Avenue in Greenwich Village. Next, the plan must be approved by the state health commissioner, which has already given some indication that it favors the plan

An official in the city's Department of Housing Preservation and Development responsible for the construction of affordable housing was arrested on federal racketeering conspiracy and bribery charges with six developers, two of them lawyers. Wendell Walters, assistant commissioner for new construction, transformed the agency into a racketeering enterprise along with developer Stevenson Dunn. Walters is alleged to have taken approximately $600,000 in bribes and kickbacks on about $22 million in moderately priced housing projects overseen by HPD in the Bronx, Queens and Brooklyn between 2002 and 2011. Walters had played a key role in Mayor Michael Bloomberg's $8.5 billion housing plan to preserve and build 165,000 apartments for half a million middle-class and working-class New Yorkers by 2014

Mayor Michael Bloomberg and the heads of the State Assembly and State Senate have agreed on a memorandum of understanding that will provide the financing framework to close the gap in the Manhattan Greenway on the East Side of Manhattan through a land deal with the United Nations. The deal involves the sale of a portion of Robert Moses Playground to the U.N. for construction of a new building. The complicated land deal was first put into motion by legislation signed by Governor Andrew Cuomo in July, but the city and state government leaders still had to come to an agreement on details by Oct. 10.

The World Monuments Fund has placed 510 Fifth Avenue on its biannual list of cultural heritage sites at risk. The controversy over proposed structural changes to the property by Vornado, said that the case "raises questions about the legality of recent alterations and the capacity of the New York City Landmarks Commission to enforce protective regulations." The building is one of 67 sites worldwide included on the list. Other United States sites include the New York Studio School of Drawing, Painting and Sculpture at 8 West 8th Street, the Orange County Government Center in Goshen, N.Y and the Manitoga building in Garrison, N.Y

The city's Landmarks Preservation Commission rejected developer Jared Kushner's application to build atop the landmarked Puck Building in Soho, saying he will need to rethink his plans for rooftop additions to the 203,000-square-foot, mixed-use building at 295 Lafayette Street. Kushner's plan had involved redoing the top floors of the 10-story Romanesque Revival-style building and creating energy efficient penthouse units. Kushner said he would continue to refine the design in accordance with the commission's advice. "We look forward to continue working together to achieve the right outcome for the building," he said

Led by two forthcoming hotels from Hidrock Realty, the Fashion District is undergoing a hotel boom. Hidrock Realty , is bringing hotels to 25 37th Street, between Fifth and Sixth avenues, and 960 Sixth Avenue, at West 35th Street. Demolition is nearly complete at the 37th Street site, which will become a new 173-room, 70,000-square-foot SpringHill Suites. Meanwhile, the Sixth Avenue office building, which Hidrock acquired in a foreclosure auction, will be converted into a 100,000-square-foot, 167-room Courtyard by Marriott, with a rooftop bar.

Taconic Investment Partners completed raising $220 million for a fund focused on buying New York City properties. The firm is targeting "value-add and opportunistic multifamily, office and retail assets in New York City," expecting to earn a 15 percent to 17 percent net return on the investments. "The shifting real estate landscape and capital markets disruption are likely to provide opportunities for significant long-term upside potential," company co-CEO Paul Pariser, said. Even as Taconic did well with the Google sale, at 375 Pearl Street. Taconic purchased the tower in 2007 for $173 million and sold it this June for $120 million.

New York City real estate developers may be defrauding the government out of hundreds of millions of dollars every year in unpaid taxes. Curnutt said many real estate partnerships in particular are avoiding the taxes they owe. If an individual decides to partner up with someone to develop a property, he said, they get a loan from a lender. They then deduct a portion of that loan each year when they file taxes. However, when they sell the building, they owe the government the cumulative amount they saved from the deductions.

Gap will close one-quarter of its New York City locations.

Blackstone Group plans to add new retail space in the public plaza along 42nd Street between Times Square and Bryant Park. The plans include new retail in Equity Office's tower at 1095 Sixth Avenue and in a renovated three-story building at 120 West 42nd Street, that will also have two underground levels. The entire $25 million project is scheduled to be completed in fall 2012. Blackstone hopes that the new retail and the Plaza will complement each other going forward.

Related Companies has closed down a one-acre park squeezed between two skyscrapers spanning 92nd to 93rd streets and Second to Third avenue holding it hostage until the city agrees to give it several million dollars in tax breaks for an adjoining rental property. Related purchased the site from the city for $10 million in 1983 under a plan to revive the area. Per the agreement, the company had to maintain the park through June 2008, but has kept it clean and safe until now. It will return the park to the ownership of the city if granted the tax breaks.

The recession helped deep-pocketed national real estate investment trusts find their way into the New York market, and they are now aggressively picking up existing properties and building new developments all over the city. The high costs and hard-to-navigate public approval process for construction in the city, New York development used to be an almost an entirely private enterprise, ruled by local developers such as the Related Companies and the Rudins.

While global economic concerns have landlords of vacant U.S. retail spaces scrambling for any tenant, in Manhattan, landlords are patiently awaiting the perfect tenant for their trophy spaces. For example, it's not for lack of interest that the 55,000-square-foot retail space in SJP Properties' 11 Times Square, at 42nd Street and Eighth Avenue, has sat vacant for two years. Rather the developer wants to land a big-name and raise the profile of the one million-square-foot tower.

New York Buildings sold

Africa Israel USA sold the Clock Tower building at 5 Madison Avenue for $165 million.and close January 2012. The buyer has made a $5 million deposit -- $2 million of which is non-refundable.

Savanna formed a partnership with the Feil Organization to purchase the office building 21 Penn Plaza for $137 million. Previously Savanna picked up nearby 31 Penn Plaza for $130 million. It's also acquired 100 Wall Street, 80 Broad Street, 386 Park Avenue South, 104 West 40th Street, 1375 Broadway and 5 Hanover Square through a $550 million real estate investment fund it closed in April.

Brooke Astor's apartment at 778 Park Avenue has been sold for $21 million, about 50 percent less than its original 2008 asking price of $46 million. The buyer is an unnamed New York-based businessman. who added that the buyer will likely pay an additional 3 percent "flip" tax towards the co-op board's reserve fund. The co-op board at the building, between 73rd and 74th streets.

Invesco has put the office tower at 33 Maiden Lane on the sales market. Three-fourths of the 625,000-square-foot tower is leased by the ultra-credit-worthy Federal Reserve Bank of New York. But the bank rented the space in 1986 in an agreement that runs through 2023, guaranteeing it will be paying below market rate for another dozen years.

Glenwood Management has purchased from Fordham University a vacant development site at 165 West 60th Street, between Ninth and Amsterdam avenues, for $75 million, adding to its portfolio of former Fordham sites. Glenwood is said to be planning a massive 54-story residential tower at an adjacent lot at 160 West 60th Street.

The Rudin family closed on its $260 million purchase of the former main campus of St. Vincent's Hospital in Greenwich Village. The Rudins purchased the property from the closed hospital's Chapter 11 estate. The completion of the sale, with the assistance of Eyal Ofer's Global Holdings, will allow the Rudins to go forward with their plan to redevelop the site with a new health care center and condominiums, townhomes and a new elementary school. Rudin has donated the former hospital's O'Toole building to North Shore-Long Island Jewish Health Care System, which would run the neighborhood medical complex, expected to open in 2014.

Eight buildings were part of SL Green, Jeff Sutton and Stonehenge Partners' reported bulk New York City buy. The total price of the eight-building portfolio was $416 million and includes 44 West 55th Street, 400 East 57th Street, 752 Madison Avenue and 19 and 21 East 65th Street, in addition to 724 Fifth Avenue, a 12-story retail location that houses Prada, and 762 Madison Avenue, a five-story building with retail, including an Armani store, and office space.

The New York City School Construction Authority bought on One Peck Slip, a four-story, 71,000-square-foot building between Pearl and Water streets from the U.S. Postal Service for $13.5 million.

Extell Development paid $80 million for 16-18 West 57th Street a five-story commercial building that the previous developer bought in 2007 for $60 million, with hopes to build a 28-story mixed-use tower. Instead, their original lender Petra Capital Management sold the loan to a company affiliated with Barnett earlier this year,

The long-stalled concrete shell at 180 Ludlow Street on the Lower East Side is now owned by BD Hotels, who acquired the property for $25 million. It was sold to BD by S&H Equities, a real estate development firm specializing in the Lower East Side that's run by Serge Hoyda.

NYC Buildings For Sale

Bush Tower located at 130 West 42nd Street a 260,000-square-foot, is back on the market. The office property is expected to fetch around $140 million and was previously on the market for $165 million

Y&R, formerly Young & Rubicam, has put its Midtown headquarters located at 285 Madison on the market Y & R is also in discussions for 350,000 square feet in 3 Columbus Circle.., Y&R purchased its current headquarters at 285 Madison Avenue 28 years ago and has been looking for buyers for several months. The 28-story building near 40th Street has 407,127 square feet, including a 21,075-square-foot retail space on the bottom floor.

A site at 309 Fifth Avenue, between 31st and 32nd streets, is in contract to be sold to an entity controlled by New Tower Trust. A 27,000-square-foot building that is actually a 150,000-square-foot development site being sold by an entity controlled by a fashion company and Urban Development Partners. The site was last sold in 2006 for about $50 million and carried a $31 million mortgage from Arbor.

Invesco has put the office tower at 33 Maiden Lane on the sales market. Three-fourths of the 625,000-square-foot tower is leased by the ultra-credit-worthy Federal Reserve Bank of New York. But the bank rented the space in 1986 in an agreement that runs through 2023, guaranteeing it will be paying below market rate for another dozen years.

New York Office Leases:

Total Manhattan Office Class A vacancies increased from 20.33 million RSF to 20.88 million RSF.
Total Manhattan Office Market vacancies increased from 32.93 million RSF to 33.38 million RSF.
Total Midtown Office vacancy increased from 19.58 million RSF to 20.30 million RSF.
Total Midtown South Office vacancy decreased from 5.24 million RSF to 5.09 million RSF.
Total Downtown Office vacancy decreased from 8.11 million RSF to 7.98 million RSF.
Total vacant Office Direct Space For Rent in Midtown Manhattan increased from 17.29 million RSF to 17.90 million RSF.
Total vacant Office Sublease Space For Lease in Midtown Manhattan increased from 2.29 million RSF to 2.41 million RSF.
Total vacant Office Direct Space in Midtown South Manhattan decreased from 4.92 million RSF to 4.78 million RSF.
Midtown South Manhattan Sublease vacancies stayed at 0.32 million RSF.
Total Downtown Manhattan Office Direct Lease Space decreased from 7.60 million RSF to 7.49 million RSF.
Total Downtown Manhattan Office Sublease Vacancies decreased from 0.52 million RSF to 0.50 million RSF.

NYC Retail Leases:

Total Available Manhattan Retail Space increased from 0.97 million RSF to 0.99 million RSF.
Midtown Manhattan Retail vacancy increased from 0.31 million RSF to 0.35 million RSF.
Midtown South Retail space vacancies decreased from 0.45 million RSF to 0.42 million RSF.
In Downtown Manhattan, Retail vacancy increased from 0.21 million RSF to 0.22 million RSF.

New York Industrial Leases:

Total Manhattan Industrial Vacant Space stayed at 0.10 million RSF.
Midtown vacancy stayed at 0.03 million RSF.
Midtown South Industrial space vacancies stayed at 0.07 million RSF.

Manhattan Office Rentals:

Pearson Inc. leases 271,247 sf at 330 Hudson St
The education company and publisher signed a 15-year lease for the entire fifth through 13th floors. The tenant is expected to occupy the space during the fourth quarter of 2013. After moving in, the company will have about 706,000 square feet total in a three-building campus that includes 330, 345 and 375 Hudson Street.
MSCI Inc. leases 125,000 sf at 7 World Trade Center
The provider of investment decision support tools signed a 20-year lease for floors 47 through 49. The company is relocating from smaller offices at One Chase Plaza and 88 Pine Street, the New York Post reported. The building is now 100 percent occupied.
Aegis Media Americas Inc. leases 94,000 sf at 150 East 42nd St
The UK-based media and digital marketing communications firm signed a 15-year lease. The tenant, which is subleasing the entire 13th and 14th floors through 2013, will be converting to a direct lease with the landlord.
Endurance Capital Management leases 56,065 sf at 750 Third Ave
The financial firm signed a sublease for 40,483 square feet on the second floor and 3,525 square feet on the 10th floor, as well as a 10-year direct lease with the landlord for 12,057 square feet, also on the 10th floor.
Juvenile Diabetes Research Foundation leases 42,291 sf at 26 Broadway
The nonprofit signed a new lease for the entire 15th floor, doubling its occupancy in the building. The tenant had moved into the 14th floor in 2009.
The State of the Netherlands leases 37,000 sf at 666 Third Ave
The State of the Netherlands signed a 15-year lease on the 18th and 19th floors of the Chrysler East building. The tenant is relocating and consolidating its Consulate General's office and its U.N. Mission.
New York University leases 33,000 sf at 411 Lafayette St
The university signed a 10-year expansion lease on parts of the third and fourth floors and the entire fifth floor, bringing its total occupancy in the building to 45,000 square feet.
Luxor Capital Group leases 31,285 sf at 1114 Sixth Ave
The hedge fund signed a lease renewal.
Michael J. Fox Foundation leases 29,468 sf at 498 Seventh Ave
The nonprofit signed a lease on the 18th floor.
CIFC Corp. leases 29,212 sf at 250 Park Ave
The loan asset manager signed a new lease to expand onto the fourth floor. The tenant had been occupying a smaller, 18,000-square-foot space on the fifth floor.
Huron Consulting leases 28,812 sf at 40 Wall St
The consulting firm signed a lease for the entire 20th floor.
e-Dialog leases 24,862 sf at 1350 Broadway
The digital marketing firm signed a lease expansion and renewal, more than doubling its occupancy in the building.
Golub Capital leases 24,140 sf at 666 Fifth Ave
The credit asset management and direct lending business signed a lease. The company is relocating from a smaller, 20,000-square-foot space at 551 Madison Avenue.
Scripps Networks LLC leases 22,107 sf at 1180 Sixth Ave
The entertainment and media firm signed a six-year lease. The reported asking rent was $55 per square foot.
IBISWorld Inc. leases 16,209 sf at 40 Wall St
The publisher of U.S. industry research signed a long-term lease for half of the 15th floor.
Haver Analytics leases 16,181 sf at One Grand Central Place
The financial company signed a lease expansion and renewal.
HQ Global Workplaces leases 16,000 sf at 411 Lafayette St
The office-space provider signed a 10-year lease on the top floor.
SECOR Asset Management leases 13,575 sf at 1 Penn Plaza
The asset management firm subleased space.
SS&C leases 12,068 sf at 40 Wall St
The investment and financial management company signed a lease for part of the 15th floor.
Agro-Farma Inc. leases 11,298 sf at 72 Spring St
The yogurt company signed a 10-year office lease on the 12th floor. The reported asking rent was $50 per square foot.
Iris Public Relations leases 10,000 sf at 632 Broadway
The public relations firm signed a lease on the entire fifth floor. The reported asking rent was $40 per square foot.
Avalance Studios New York leases 9,705 sf at 536 Broadway
The video game developer signed a 10.5-year lease.
La Prairie Inc. leases 9,400 sf at 680 Fifth Ave
The cosmetics company signed an expansion lease on the entire 11th floor. The tenant also occupies the entire 13th and 14th floors.
American Precious Metals Exchange Inc. leases 9,248 sf at 40 Wall St
APMEX, the precious metals dealer, signed a 10-year lease for the entire 50th floor. The tenant paid the $176,000 security deposit with three 32-ounce bars of gold. Michael Kinney of Loeb & Loeb LLP served as legal counsel on behalf of the tenant.
The Aspen Insitute leases 8,300 sf at 477 Madison Ave
The nonprofit signed a 10-year lease for its New York executive and administrative offices.
Sanky Communications leases 8,000 sf at 599 11th Ave
The communications firm signed a lease.
Office Depot leases 7,675 sf at 1250 Broadway
The office-supplies retailer signed a 3.5-year office lease. The reported asking rent was $52 per square foot.
High Production Inc. leases 7,500 sf at 254 West 35th St
The fashion company signed a lease.
Natasha Accessories leases 7,500 sf at 254 West 35th St
The fashion company signed a lease.
Spectrum Group leases 7,249 sf at 1250 Broadway
The financial firm signed a six-year lease. The reported asking rent was $48 per square foot.
Whitehall Advisors leases 7,000 sf at 38 West 21st St
The UK-based consulting firm signed a lease.
Executive Color Systems leases 6,500 sf at 42 West 39th St
The office equipment company signed a six-year lease. The reported asking rent was $38 per square foot.
42nd St. Photo leases 6,000 sf at 35 West 35th St
The photography equipment retailer signed a lease for second-floor office space.
React2Media leases 5,860 sf at 35 West 36th St
The marketing agency signed a seven-year lease. The reported asking rent was $34 per square foot.
Workshop/APD leases 5,283 sf at 39-41 West 38th St
The architectural firm signed a lease.
Destination Media/GSTV leases 5,086 sf at 183 Madison Ave
The entertainment and media firm signed a seven-year lease. The reported asking rent was $55 per square foot.

New York Retail Leases:

Spirit Halloween leases 24,317 sf at 766 Sixth Ave
The Halloween costumes and accessories store signed a temporary, two-month lease for a pop-up store at the Chelsea Landmark, a rental building.
Planet Fitness leases 20,000 sf at 158 West 27th St
The fitness chain signed a 15-year lease for another location. The tenant will occupy the ground and second floors.
Tiffany and Company leases 10,700 sf at 97 Greene St and 106 Wooster St
The jewelry company signed a lease for 12 years and 4.5 months for 6,200 square feet on the ground floor and 4,500 square feet of selling space on the lower level.
BankUnited leases 10,000 sf at 960 Sixth Ave
The Florida-based bank signed a long-term lease for multilevel space.
apple seeds leases 7,300 sf at 200 West End Ave
The children's activity center and all-in-one play space signed a new, 15-year lease to open its second Manhattan location.
CVS Pharmacy leases 7,025 sf at 420 Fifth Ave
The drugstore signed a lease.
Sunny Skies Preschool leases 6,000 sf at 112 Ridge St
The daycare center signed a 20-year lease.
Pera Soho leases 5,500 sf at 54 Thompson St
The Turkish restaurant signed a lease for another Manhattan location.
Ricky's NYC leases 5,180 sf at 55 West 125th St
The accessories and beauty-supplies retailer signed a two-month lease for a pop-up Halloween shop.
Pantries leases 5,125 sf at One Grand Central Place
The cafe and restaurant signed a lease.
Ippudo Restaurant of NY leases 5,000 sf at 321 West 51st St
The Japanese restaurant signed a 10-year lease for its second New York location. The space includes 4,000 square feet on the ground floor and 1,000 square feet on the mezzanine level.
Canvass Home leases 4,711 sf at 123 West 17th St
The Soho-based home furnishings store signed a lease to open a Chelsea showroom.
Leila Heller Gallery leases 3,645 sf at 210 11th Ave
The art gallery signed a lease.
Dienst + Dotter leases 3,500 sf at 411 Lafayette St
The Scandinavian antiques-and-paintings retailer signed a lease for its first Manhattan location.
Paul & Shark leases 3,100 sf at 667 Madison Ave
The Italian sportswear company signed a retail lease. The tenant is taking space previously occupied by Michael Kors.
USApe LLC leases 3,100 sf at 91 Greene St
The fashion retailer leased the entire building for five years. The reported asking rent for the ground-floor portion was $400 per square foot.
McDonald's leases 3,000 sf at 3809 Broadway
The fast-food chain signed a long-term lease to relocate its cafe concept from across the street.
STAT Medical Associates PLLC leases 3,000 sf at 111 Cedar St
The ambulatory healthcare facility signed a 10-year retail lease.
Bestype Digital Imaging LLC leases 3,000 sf at 285 West Broadway
The printing and signage service provider signed an 8.5-year retail lease.
Cesare Attolini leases 2,800 sf at 798 and 800 Madison Ave
The Italian clothing company signed a retail lease.
AT&T leases 2,500 sf at 31 East 17th St
The mobile services retailer signed a lease.
Elizabeth Dee Gallery LLC leases 2,500 sf at 120-126 11th Ave
The art gallery signed a five-year lease extension.
International Pastry Concepts LLC leases 2,250 sf at 189 Spring St
The pastry company signed a 10-year lease for 1,250 square feet on the ground floor and 1,000 square feet of patio space. The reported asking rent for the ground-floor space was $192 per square foot.
Stepevi Inc. leases 2,250 sf at 147 Wooster St
The home furnishings retailer signed a five-year lease with a five-year option. The lease includes 1,800 square feet on the ground and 450 square feet of mezzanine-level space. The reported asking rent on the ground level was $120 per square foot.
Basics Plus leases 2,213 sf at 85 John St
The housewares and hardware chain signed a lease for its ninth NYC location.
Matta NY Ltd. leases 2,200 sf at 376 Broome St
The clothing retailer signed a temporary lease.
Think Pink Spa Inc. leases 2,200 sf at 188 Ludlow St
The nail salon and spa signed a lease for 10 years and five months. The reported asking rent was $110 per square foot.
La Mano Pottery leases 2,000 sf at 110 West 26th St
The art education company signed a 10-year retail lease. The reported asking rent was $42 per square foot.
O'Janny's Restaurant leases 2,000 sf at 184 Dyckman St
The restaurant signed a lease.
Building on Bond leases 1,950 sf at 343 Gold St
The tenant signed a long-term lease for a new restaurant concept at the base of Avalon Fort Greene.
Ina Designer Consignment leases 1,800 sf at 231 West 18th St
The fashion retailer signed a 10-year lease. The reported asking rent was about $53 per square foot.
John Lobb leases 1,800 sf at 798 and 800 Madison Ave
The English shoemaker signed a lease.
16 Handles leases 1,785 sf at 498 Sixth Ave
The frozen yogurt chain signed a lease.
Alex and Ani Inc. leases 1,700 sf at 425 West Broadway
The jewelry and lifestyle brand signed a lease for its first New York city retail store.
The Bean Coffee Shop leases 1,600 sf at 147 First Ave
The cafe signed a 12-year lease. The reported asking rent was $110 per square foot.
2 Bros Pizza leases 1,600 sf at 1015 Sixth Ave
The pizzeria signed a 10-year lease. The reported asking rent was $165 per square foot.
Amber leases 1,500 sf at 135 Christopher St
The Asian fusion restaurant group signed a long-term lease.
Ko leases 1,500 sf at 1570 Second Ave
The Asian restaurant group signed a long-term lease.
David's Tea USA Inc. leases 1,500 sf at 275 Bleecker St
The tea shop signed a 10-year lease. The reported asking rent was $160 per square foot.
16 Handles leases 1,334 sf at 2600 Broadway
The frozen yogurt chain signed a lease.
Crumbs leases 1,275 sf at 254 Park Ave South
The bakery chain signed a long-term lease for another location. The reported asking rent on the ground floor was $150 per square foot.
Energy Kitchen leases 1,230 sf at 455 Park Ave South
The fast-health-food chain signed a lease for its 10th Manhattan location,
Classic Kids Photography leases 1,200 sf at 395 Amsterdam Ave
The photography studio signed a long-term lease for another location.

New York City Buildings Sold:

530 Fifth Ave, 26-story 500000 sf office bldg was sold to Crown Acquisitions; Murray Hill Properties; Jamestown Properties; Rockwood Capital for $390.0M
The property sold for $390 million, or $780 per square foot, the Wall Street Journal reported. Jamestown Properties and Rockwood Capital, which are providing equity for the purchase, will be the controlling equity holders in the property. The selling group originally acquired the building for $210 million in 2004. The building has 21,790 square feet of retail space on Fifth Avenue, currently occupied by LensCrafters, Chase bank and Fossil. The building also has several big-name office tenants, including JPMorgan Chase and MassMutual.
1540 Broadway, 907427 sf office bldg was sold to HSBC Alternative Investments; Edge Fund Advisors for $346.8M
The remaining 51 percent stake in the Bertelsmann building sold for $346.8 million. The buyers acquired 49 percent of the building from CB Richard Ellis in November 2010, in a deal valued at $254 million. CBRE had previously purchased the property in a fire sale from Macklowe Properties.
Seventh Ave and Greenwich Ave, Former hospital/development site was sold to The Rudin family for $260.0M
The Rudin family's $260 million purchase of the former main campus of St. Vincent's Hospital in Greenwich Village closed last month, the Wall Street Journal reported. The Rudins bought the property from the closed hospital's Chapter 11 estate. The Rudins' $800 million plan to redevelop the site calls for a new healthcare center, condominiums, townhomes and an elementary school.
1107 Broadway, 16-story office bldg was sold to Witkoff Group for $191.0M
The purchase of the building, a part of the former International Toy Center, closed for $191 million, following a bankruptcy auction in June. The new ownership is planning a $290 million condo conversion, featuring 145 units, in collaboration with a Morgan Stanley real estate fund.
475 Fifth Ave, 280000 sf office bldg was sold to TIAA-CREF for $144.0M
The property sold for $144 million, or about $514 per square foot. A joint venture of real estate developer Joseph Moinian and Westbrook Capital acquired 475 Fifth Avenue, located at 41st Street, in 2007 for $160 million, but lender Barclays took the property back in 2009 through a deed in lieu of foreclosure.
31 Penn Plaza, 18-story 444000 sf office bldg was sold to Savanna for $130.0M
The property sold for $130 million. The building will undergo $26 million in capital improvements to update the property and lease the available office space, Savanna said, including a new front entrance, fully renovated lobby, modernized elevators and other building upgrades and maintenance.
170 Amsterdam Ave, 20700 sf development site was sold to Equity Residential for $76.5M
Equity Residential signed a 99-year lease with the intention of building apartments with retail at the stalled site, the New York Post reported. The deal was valued at $76.5 million.
165 West 60th St, Development site was sold to Glenwood Management for $75.0M
The vacant development site sold for $75 million, adding to the new ownership's collection of sites formerly owned by Fordham University. The buyer is believed to be planning a 54-story residential tower at an adjacent lot at 160 West 60th Street.
93 Worth St, 165000 sf office bldg was sold to Izaki Group Investments USA for $49.7M
The property sold for $49.7 million. The building is slated for conversion into a 96-unit residential condo.
1143 Second Ave, 6-story 85000 sf apt. bldg 93 units total was sold to Stonehenge Partners for $47.0M
The property sold for $47 million. The building contains 52 studios and 41 one-bedrooms, and has about 10,000 square feet of ground-floor commercial space. The building has 77,000 square feet of development rights.
12-14 Warren St, Development site was sold to Anida Operacions Singulares for $26.17M
The existing building with additional air rights sold for $26.17 million.
412 East 90th St, Development site was sold to The Spence School for $26.1M
The property sold for $26.1 million, the New York Observer reported.
344-346 West 14th St, 6-story 22000 sf apt. bldg 20 units total was sold to First Atlantic Real Estate for $23.25M
The property sold for $23.25 million. The price represents a stabilized capitalization rate of about 5.45 percent. In addition to the apartments, the building has two retail spaces with selling basements.
529-537 East 81st St, 5 apt. bldgs 41600 sf and 100 units total was sold to n/a for $16.9M
The contiguous residential buildings sold for $16.9 million.
500 West 43rd St, Parking garage 130 spaces total was sold to Harbor Group International for $10.5M
The three-level parking facility sold for $10.5 million. The garage is net leased to the Hertz Corporation, which uses the space for one of its car rental sites.
142 Sullivan St, 7-story 16212 sf apt. bldg 28 units total was sold to Galiano LLC for $9.43M
The property sold for $9.43 million, or $582 per square foot. The seller had acquired the building, which has two retail units, in October 2009 for $5.9 million
838 Riverside Dr, 6-story 56190 sf apt. bldg 42 units total was sold to n/a for $9.4M
The elevator building sold for $9.4 million, or $167 per square foot.
113 East 61st St, 6-story 5700 sf townhouse was sold to n/a for $8.3M
The property sold for $8.3 million, or about $1,456 per square foot. The building was bank owned after a foreclosure and was most recently used as offices by a hedge fund, according to a release from the broker. The buyer plans to convert the property back to a single-family residence.
334 Canal St, 5-story 14545 sf apt. bldg was sold to Vornado for $8.2M
The building sold for $8.2 million at an auction, Crain's reported. The property has full-floor loft apartments and a 2,900-square-foot retail space.
156 Prince St, 6-story 15000 apt. bldg 24 units total was sold to n/a for $7.8M
The elevator building sold for $7.8 million, or $520 per square foot. Thirteen of the apartments are rent stabilized and three are rent controlled.
449 Washington St, 5-story 8200 sf mixed-use bldg was sold to n/a for $6.9M
The building sold for $6.9 million, or about $841 per square foot.
82 Christopher St, 5-story mixed-use bldg was sold to Jayvanka LLC for $6.1M
The property sold for about $6.1 million. Beck Street Capital bought the building in December 2005 for $3.7 million.
666 West 162nd St, 6-story 53034 sf apt. bldg 50 units total was sold to n/a for $6.0M
The elevator building sold for $6 million. There are 17 one-bedrooms, 19 two-bedrooms, nine three-bedrooms and five four-bedrooms.
193 Spring St, 3-story 5000 sf mixed-use bldg was sold to Marco Gonzalez for $5.5M
The building sold for $5.5 million, or $1,100 per square foot.