New York Market Overview

Office:

Hope for longer and larger office spaces was encouraged as more people showed up to work and tenants continued to sign leases. Last month office leasing was 3.5% higher year-over-year. Manhattan’s year-to-date activity of almost 21 million square feet with leasing on track to surpass 30 million square feet for the year.

Midtown South leasing volume jumped 45% month-over-month and up 28% from last year, from Yeshiva University’s 160,000-square-foot condominium leasehold at 1293 Broadway. Midtown South 17.4% availability. Average asking rents dropped slightly to foot to $74.56/RSF

Midtown leasing activity dropped from 3 million to 1.4 million square feet month-over-month, that was due to Blackstone’s 1 million-square-foot lease expansion and extension at 345 Park Avenue.

RFR Holding stated it would resolve the debt problem at its Class A office buildings without selling them. It is likely that RFR will have to put up more capital and/or sell equity stakes in the buildings, or both.

Office buildings have lost value, interest rates on CRE have doubled. Lenders have reduced loan-to-value ratios on new office debt.

American Express is talking to Larry Silverstein along with other Manhattan trophy buildings about occupying 2 World Trade Center. or renovate its current home at 200 Vesey Street aka 3 World Financial Center where it owns and occupies the top portion.

Eretz Group got a 28-month extension and refinanced on a $34 million in CMBS debt backed by 252 West 37th Street, renovated 164,000-square-foot building. Occupancy rate at the 17-story Class B building plunged to 62% as of September, down from 100% in 2014.

Michael Shvo just landed an inventory loan for the condo portion of 685 Fifth Avenue.

One Vanderbilt hits 100% occupancy with the last lease signed for 6,000 RSF on the 54th floor, Asking rents for the space on the 54th floor were $265 per RSF.

• Christie’s renewed its 400K sf lease at 20 Rockefeller Plaza.
• Yeshiva University rented 160,000 RSF at 1293 Broadway for a healthcare campus.
• Louis Vuitton Moet Hennessy has leased 150,000 square feet at 590 Madison Avenue.
• Chobani signed a lease to occupy 121,000 RSF at 360 Bowery.
• Stubhub rented 103,000 RSF at 4 World Trade Center over three floors vacated by Spotify.
• Catholic Charities signed a 77,000 SF 30-year lease at 80 Maiden Lane.
• Earl Monroev New Renaissance Basketball School signed a 70,000 SF 31 year triple net lease at 647 Elton Avenue for $49/SF.
• PubMatic rented 60,000 RSF at 498 Seventh Avenue.
• Otto Environmental Systems signed a 60K sf at 807 Bank Street.
• School in the Square signed a lease for 60,000 RSF at| 4650 Broadway.
• Daiwa Capital Markets signed a lease for 44,100 RSF at 1251 Sixth Avenue.
• Hazen Sawyer leased 44,000 RSF at 498 Seventh Avenue.
• Orchestra leased 42,000 RSF office lease at 195 Broadway.
• Virtus Investment Partners leased 41,000 RSF at | 1301 Sixth Avenue.
• Weaver and Tidwell leases 36,000 RSF at Penn 1
• Circle Internet Financial is subleasing 34,000 square feet at One World Trade Center.
• O’Melveny & Myers leased 29,500 RSF at 1301 Sixth Avenue.
• Sam Edelman leased 29,300 RSF at 1325 Sixth Avenue.
• Wholesale Electric Caribe leased 26,000 RSF at 182-20 Liberty Avenue.
• Christofferson, Robb & Co. signed a 19,000 RSF lease at 680 Fifth Avenue.
• Armanino signed a 19,000 SF office lease at 437 Madison Avenue.
• Loeb Enterprises renewed its 18,000 SF lease at 712 Fifth Avenue.
• 17Capital signed a 16,000 SF lease at 452 Fifth Avenue aka 10 Bryant Park.
• Aveda Arts & Sciences signed a 16,000 SF 10-year lease at 35 Pearl Street in Brooklyn.
• Posh signed an 11,000 SF five-year lease at 40 Crosby Street.
• Injective Labs signed a five-year lease for 8,685 RSF at 205 West 28th Street.

Retail:

• 99 Ranch Market signs 44K sf lease at 37-11 Main Street
• Bonhams signed a 42,000 square feet lease at 111 West 57th Street. Bonhams will move into the Midtown Manhattan location late next year.
• Crunch Fitness signed a 20,000 SF lease at 401 West 207th Street development
• Artefacto, opened a two-story, 15,000-square-foot store at 149 Madison Avenue.
• Dante NYC signed a lease at 210 Elizabeth Street in Nolita for 10,000 sf
• Carneval signed a lease for 7,500 SF at 470 Driggs Avenue
• Please Don’t Tell signed a 6,000 SF new lease at 162 West Fourth Street sf.
• Unya NYC signed a lease for 5,000 RSF at 237 West 35th Street for a new eatery.
• Pura Vida signed a 4,100 SF lease at 25 Kent Avenue
• Alex Mill signed a new lease for a 2,000 SF store in Rockefeller Center.
• Medium Rare signed a lease for 2,000 SF at 488 Third Avenue.