New York Market Overview

Office:

In Midtown, more than 850,000 square feet of space was removed due to planned conversions at 5 Times Square and 767 Third Avenue.

The office availability rate in Manhattan hit 17.9% in the fourth quarter of 2024, the lowest level seen since 2020. 35.9 million square feet of office space was leased, 17.2% more than the same time in 2023. Class-A office space made up the largest share at 38.9%. Tenants leased 3.6 million square feet of office space, about a million RSF more than last January. Leasing volume jumped 24% from December.

The average asking rent held steady at around $73.00 per square foot, about 8% below March 2020. Leasing velocity was 36% above the ten-year monthly average and sublet supply tightened for the fourth month in a row, hinting at a continued recovery.

Midtown Manhattan had an average net effective cost to tenants of $206.25 per square foot. A 9% increase from the previous quarter.

Downtown Manhattan had an average occupier cost of $91.88 per square foot.

1. Citadel leased 504,000 RSF lease at 660 Fifth Avenue, while it waits for a newly constructed headquarters at 350 Park Avenue.
2. Jane Street Capital is expanding its footprint at 250 Vesey Street in Battery Park City to nearly 1 million square feet. The expansion of about 400,000 square feet adds to the 600,000 square feet Jane Street most recently occupied.
3. Mayer Brown’s 331,000-square food renewal and expansion at 1221 Sixth Avenue. The firm had occupied 235,000 square feet.
4. KnitWell Group, the parent company of brands including Ann Taylor, Chico’s, Lane Bryant and LOFT, signed a 20-year lease for 246,000 square feet at 7 Times Square, expanding by 55,000 square feet.
5. Stonepeak signed a 149,000-square-foot lease at 30 Hudson Yards.
6. Visa leased 146,000 square feet at 30 Hudson Yards.
7. FDIC signed a new 10-year lease at 1166 Sixth Avenue for 147,000 RSF. The FDIC is relocating from the Empire State Building.
8. General Services Administration is relocating from Building 77 of John F. Kennedy International Airport to 159-30 Rockaway Boulevard and will occupy 139,000 RSF.
9. IBM signed a new 15-year expansion for 93,000 RSF for a new total presence to 362,000 RSF at 1 Madison Avenue.
10. Amazon, via WeWork, adds 112,000 sf at Brookfield’s Manhattan West. Amazon already occupied 360,000 square feet in the 1.8-million-square-foot property.
11. Oaktree Capital Management leased 79,000 RSF at 1290 Sixth Avenue.
12. CBRE Signed a new lease in partnership with Industrious at 390 Park Avenue for 64,000 RSF.
13. Jay Suites signed a 12-year renewal at 515 Madison Avenue for 60,000 RSF.
14. Spectrum Reach signed a new 11-year lease at 3 Times Square for 56,000 RSF.
15. Hartree Partners signed a new lease for 54,000 RSF at 1185 Sixth Avenue.

Retail:

1. Kwenda Collegiate Girls Charter School signed a new 10-year lease for 44,100 SF at 2520 Church Avenue.
2. Aritzia renewed its lease at 560 Broadway for 30,000 sf.
3. Grupo Gitano signed a 13,600 sf new lease at 89 South Street.
4. C Town Supermarkets signed a new 15-year lease for 12,500 SF at 425 Grand Concourse.
5. Dumbo Market signed a new lease at 1223 Second Avenue for 12,000 SF.
6. Ulta Beauty signed a new 10-year lease at 620 Sixth Avenue for 11,500 sf.
7. Los Tacos No. 1 signed for 9,800 SF with a new 10-year lease at 318 West 39th Street.
8. Mulberry Market signed a new 15-year lease at 111 Worth Street for 8,400 sf.
9. Empire Cake signed a new 10-year lease at 450 Sixth Avenue for 6,700 sf.
10. Zhoumapo signed a new lease in the 728 Eighth Avenue for 5,800 sf.

Equinox gym is ramping up its growth, boosted by a $1.8 billion investment last year. Equinox opened two locations last year that brought its footprint to 1.3 million square feet exceeding Macy’s 1.25 million square feet.

A $64 million mortgage backing the 170 Broadway a retail property was sent to special servicing as “imminent monetary default” looms in April. The landlord, a partnership of Morgan Stanley and an affiliate of Crown Acquisitions, is behind on its loan payments. 16,000 square feet is occupied by Gap, which rented the space in 2015 for $263/SF/ year. The lease included escalations of 3% annually until its expiration in 2030.

Gersh Academy will occupy three floors of Class B office, taking 57,500 square feet at 25 Chapel Street. The asking rent was $38 per square foot. The lease deal includes a 25,000-square-foot direct lease and a 32,500 sublease from Brooklyn Labs.

Gymshark leased the entire building containing 15,000 square feet at 11 Bond Street in Noho for $3.5 million per year.