New York Market Overview
Office:
Core Club signed a 20-year lease to take up to 60,000 square feet at 711 Fifth Avenue. The club is expected to take occupancy late next year, after outgrowing its 32,000-square-foot space at 60 East 55th Street.Touro College is consolidating its scattered Manhattan footprint in the heart of Times Square. The private university system has signed a 32-year lease for 243K SF at 3 Times Square tower. Touro intends to relocate much of the graduate and undergraduate programming at its three Manhattan locations.
Bloomberg LP agreed to take an additional 191,000 square feet at 919 Third Avenue. Bloomberg will occupy the 28th to 33rd floors of the Midtown office tower.
Chubb leased 240,000 square feet across 10 floors at 550 Madison Avenue for $566 million .
Fried Frank renewed its lease for 400,000 square feet at One New York Plaza for 10 years.
Mount Sinai’s Icahn School of Medicine paid $429 million in rent for a 165,000-square-foot lease at 787 11th Avenue.
Stoneridge committed to pay $311 million in rent for 100,000 square feet at One Vanderbilt for 15 years with rents rising to $245/RSF.
Tenants at 345 Park Avenue South:
| # | Tenant | Square Feet | % Sq Ft | Base Rent psf ($) | % Base Rent | Expiry |
|---|---|---|---|---|---|---|
| 1 | Deerfield | 111,420 | 34.1 | $182.17 | 81.3 | 2035 |
| 2 | Helaina | 15,783 | 4.8 | $122.00 | 7.7 | 2030 |
| 3 | ProTara Therapeutics Inc. | 10,252 | 3.1 | $109.00 | 4.5 | 2028 |
| 4 | Upland Restaurant | 7,108 | 2.2 | $46.51 | 1.3 | 2028 |
| 5 | Bank of America, N.A | 7,000 | 2.1 | $149.19 | 4.2 | 2024 |
| All Tenants | 151,563 | 46.2 | $163.07 | 100.0 | ||
| Total/WA | 326,377 | 100.0 | $76.04 | 100.0 |
Tenants at the Black Rock:
| # | Tenant | Square Feet | % Sq Ft | Base Rent psf ($) | % Base Rent | Expiry |
|---|---|---|---|---|---|---|
| 1 | CBS | 283,917 | 32.3 | $78.96 | 34.6 | 2023 & 2024 |
| 2 | Wachtell, Lipton, Rosen & Katz | 250,762 | 28.6 | $69.79 | 27.0 | 2024 |
| 3 | Orrick, Herrington, & Sutcliffe | 213,231 | 24.3 | $82.86 | 27.3 | 2026 |
| 4 | Dorsey & Whitney | 70,476 | 8.0 | $58.00 | 6.3 | 2026 |
| 5 | Charles Schwab & Co., Inc. | 18,332 | 2.1 | $119.80 | 3.4 | 2026 |
| 6 | Nusr-Et Steakhouse | 9,559 | 1.1 | $88.61 | 1.3 | 2027 |
| 7 | Gateway Newsstands | 467 | 0.1 | $25.70 | 0.0 | 2025 |
| All Tenants | 878,260 | 96.4 | $76.47 | 100.0 |
Retail:
Average asking retail rents in 13 of Manhattan’s retail corridors had year-over-year declines. Nine corridors experienced either an increase or no change in average asking price per square foot since Spring 2021.At 43%, there are twice as many spaces with an average rent under $300 per square foot from the 28% recorded in Fall 2019.
Times Square registered its lowest rent in more than a decade, with an average asking price per square foot of $998, that’s a 29% decline from Spring 2021 and a 39% decline year-over-year.
Fifth Avenue between 49th and 59th streets saw an average asking price per square foot of $2,628, a 12% decrease from Spring 2021.
Herald Square average asking price per square foot reached $390, a 20% decrease from Spring 2021 and an 11% decline year-over-year.
3rd Avenue between 60th and 72nd streets saw an average asking price of $214, a 15% increase from Spring 2021, but just a 1% increase year-over-year. Bleecker Street between 7th Avenue South and Hudson Street similarly had a 4% incline from Spring 2021 and a 1% decrease year-over-year.
Ben Soleimani signed a lease at 601 Madison Avenue. The two-year deal includes 4,226 square feet of ground-floor space, 4,270 square feet of second-floor space and 3,858 square feet on the lower level.
There was 1.1 million square feet of leasing in the first two quarters of 2021, the first time transaction volume reached 1 million square feet since the last two quarters of 2019.
Visitors in Times Square reached 200,000 per day in July 2021. NYC & Company estimates tourism will reach 34.6 million visitors in 2021, with 2.8 million visiting from other countries. That forecast is still down from the 66.6 million tourists total and 13.5 million from other countries recorded in 2019.
In October just under 30% of retail storefronts in the Grand Central and Midtown East business districts home to 15% of the city’s office stock remained vacant this summer, more than double the 10 to 15% vacancy rates seen before the pandemic.
