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New York City Office, Retail, Industrial Market Overview |
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Midtown Manhattan Office Space
Midtown Office space continues to tighten while Midtown South and Downtown vacancy increase. Midtown Landlords are offering only partial buildouts, while increasing rents. Many mid-sized and small firms are moving Downtown where rents start in the $20/RSF.
Downtown Manhattan Office Space
A new wrinkle has developed for the World Trade Center site in that the insurance companies may not pay if Larry Silverstein turns over part of the site to the Port Authority. Without the insurance proceeds some of the sites controlled by the Port Authority may not get built. Meanwhile space at World Financial is nearly fully rented and a number of large tenants are considering renting large blocks of space at 7 World Trade Center.
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New York City Retail Leases: |
- Total available Manhattan Retail Space rose from 0.61 to 0.63 million RSF.
- Midtown South Retail space vacancies rose from 0.27 to 0.32 million RSF while in Midtown vacancy held constant at 0.16 million RSF.
- In Downtown, vacancy dropped from 0.17 to 0.13 million RSF.
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New York City Industrial Leases : |
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New York City Real Estate Developments: |
- 7 World Trade may get Moody’s Investors Service as a lead tenant rumored to be looking for 500,000 square feet. Moody’s is currently at 99 Church Street.
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Manhattan Office Space Rentals : |
- Total Manhattan Office Class A vacancies increased from 16.24 million RSF to 17.43 million RSF, while total market vacancy increased from 27.42 million RSF to 28.56 million SF.
- Total Manhattan Office direct lease vacancy increased from 22.90 million RSF to 24.12 million RSF, while total sublease vacancy decreased from 4.52 to 4.44 million RSF.
- Total Manhattan Office Market vacancies increased as Midtown South Office vacancy rose from 4.31 to 4.43 million RSF.
- Midtown Office vacancy dropped from 14.48 million to 13.93 million RSF and total Manhattan Downtown Office vacancy rates increased sharply from 8.63 million RSF to 10.20 million RSF.
- Total vacant Office Space in Midtown Manhattan decreased led by a decline in total direct lease space from 12.19 to 11.85 million RSF.
- Total vacant sublease space dropped from 2.28 to 2.08 million RSF.
- Midtown South Office direct lease vacancy increased from 3.67 million RSF to 3.73 million RSF, while sublease vacancies rose from 0.64 to 0.71 million RSF.
- Total Downtown Manhattan Office vacancies increased with direct lease space increasing dramatically from 7.04 million RSF to 8.55 million RSF and sublease vacancy increasing from 1.59 to 1.65 million RSF.
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New York City Buildings Sold : |
- 220 West 42nd Street, a 227,685 SF office building, owned by W.P. Carey affiliate, was sold to Paramount Group, Inc..
- 1540 Broadway, a 1.1 million square foot tower, is in contract for $825 million. Vornado Realty Trust and Equity Office Properties are rumored to be the buyers.
- The Hilton Times Square at 234 West 42nd Street, a 444 room hotel owned by Forest City Ratner, was sold to Sunstone Hotel Investors Inc. for $242.5 million.
- 521 Fifth Avenue, a 40-story, 460,000 SF office building owned by RFR Holding LLC., was sold to SL Green Realty Corp. for $225 million.
- The Marlborough House at 245 East 40th Street, a 270-Unit rental apartment building, owned by Glenwood Management, was sold to Archstone Smith for $165 million.
- 150 East 52nd Street, a class A office building, owned by Paramount, was sold to Princeton International Properties Corp. for $120 million.
- 443 Greenwich Street, a 255,000 SF office property, owned by a Private investment partnership, was sold to Shahab Karmely for $110 million.
- 180 Montague Street in Brooklyn Heights, a 186-unit rental apartment building, owned by Continuum Company, was sold to Archstone Smith for $101 million.
- 30 Broad Street, a 431,502 SF office tower, owned by Murray Hill Properties, was sold to Gotham Broad LLC for $99 million.
- 29 West 57th Street, a 60,000 SF office property, was sold to Vornado Realty for $42 million.
- 234 West 48th Street, a Best Western President Hotel, a 334 room hotel, was sold to Partnership led by Jeffrey Goldberger for $33 million.
- 137-145 West 22nd Street, a 3 four story walk-ups, owned by Laboz Family, was sold to Ascend Group for $29 million.
- 124 West 24th Street, a Prewar loft building, owned by Grasso Holdings; Metro, was sold to Harold Milgrim for $15 million.
- 13 East 37th Street, a 18,219 SF commercial building, was sold for $7.7 million.
- Lighthouse Ventures sold their site at 350 West Broadway to Abby Rosen and Ian Schrager for $25 million where they will build a new boutique hotel.
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Noteworthy Manhattan Leases: |
- Sumitomo Mitsui leased 170,000 SF at 277 Park Avenue.
- AIG leased 86,000 SF at 160 Water Street.
- Advanced Publications leased 80,000 SF at 1166 Sixth Avenue.
- WNYC leased 71,900 SF at 160-170 Varick Street.
- CBS Broadcasting leased 64,733 SF at 555 West 57th Street.
- Barnes & Noble leased 55,000 SF at 86th Street and Lexington Avenue.
- UNIQLO leased 52,500 SF at 546 Broadway.
- Scientific Application International Corp. leased 50,000 SF at 132 West 31st Street.
- Wilson Sonsini Goodrich & Rosati leased 47,700 SF at 1301 Sixth Avenue.
- Kaplan K12 Learning Services leased 43,000 SF at 1 Liberty Plaza.
- Rockwell Group leased 40,000 SF at 5-9 Union Square West, the Springler Building.
- Barnes & Noble leased 38,000 SF at 270 Greenwich Avenue.
- Endurance Reinsurance Corporation of America leased 34,000 SF at 750 Third Avenue.
- Laboratory Institute of Merchandising, the College for the Business of Fashion, leased 30,160 SF at 535-545 Fifth Avenue.
- 1199 SEIU leased 30,000 SF at 330 West 42nd Street.
- H&M leased 30,000 SF at 86th Street and Lexington Avenue.
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