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New York City Office, Retail, Industrial Market Overview |
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Midtown New York City Office Space
Total office vacancies increase in Midtown and Downtown for the second straight month, after almost 10 months of consistent declines. Even though vacancies increased, demand for small office space users remain brisk with quality available units moving quickly.
Downtown New York City Office Space
Downtown there are heated discussions on the World Trade Center site, with the Port Authority encouraging the developer Larry Silverstein to give up rights to at least two buildings (Towers 4 and 5), in the hopes the site gets developed more quickly. The Freedom Tower, the centerpiece of the reconstruction and 9/11 memorial, is scheduled to break ground in April.
New York City Retail Rents
Retail vacancies increase in Midtown, Midtown South and Downtown. Increases in vacancies are primarily due to increased rents driving out old tenants as leases expire.
New York City Industrial Rents
Industrial vacancies continue to decline as buildings are being converted to alternate uses.
Madison Square Garden and the New Yankee Stadium
Madison Square Garden has agreed to move one block west to the new Moynihan Station (the old Post Office building). The new Moynihan Station will provide an updated transportation hub in the area, including new office space for New Jersey Transit.
The City Planning Commission has unanimously approved the New Yankee Stadium plan, which is privately funded. The City Council still needs to give final approval, which must be done within two months.
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New York City Retail Leases: |
- Total available New York City Retail Space rose from 0.48 to 0.51 million RSF. Midtown South Retail space vacancies rose slightly from 0.25 to 0.26 million RSF while in Midtown vacancy remained set at 0.13 million RSF. In Downtown, vacancy remained rose from 0.10 to 0.12 million RSF.
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New York City Real Estate Developments: |
- Project breaks ground at 270 Greenwich Street, for a residential and retail project which includes 170,000 sf of retail space, 425,000 sf for 228 residential condominiums, 170,000 sf for 162 mixed-income rental units, and 400 underground parking spaces.
- The former Russian Tea Room is being redeveloped as a luxury residential building with 17 apartments.
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Manhattan Office Space Rentals: |
- Total New York City Office Class A vacancies increased from 16.83 million RSF to 17.20 million RSF, while total market vacancy increased from 28.20 million RSF to 28.48 million RSF.
- Total New York City Office direct lease vacancy increased from 23.88 million RSF to 24.17 million RSF, while total sublease vacancy held constant at 4.31 million RSF.
- Total New York City Office Market vacancies increased for the second consecutive month as Midtown South Office vacancy dropped from 4.29 to 4.07 million RSF while Midtown Office vacancy rose from 14.95 million to 15.22 million RSF.
- Total New York City Downtown Office vacancy rates also increased from 8.96 million RSF to 9.20 million RSF.
- Total vacant Office Space in Midtown New York City increased led by a increase in total direct lease space from 12.79 to 13.13 million RSF. Total vacant sublease space decreased from 2.16 to 2.08 million RSF.
- Midtown South Office direct lease vacancy decreased from 3.86 million RSF to 3.56 million RSF, while sublease vacancies rose from 0.44 to 0.51 million RSF.
- Total Downtown New York City Office vacancies increased with direct lease space increasing from 7.24 million RSF to 7.48 million RSF, despite sublease vacancy holding steady at 1.72 million RSF.
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New York City Industrial Leases : |
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New York City Buildings Sold : |
- 440 Park Avenue, a 495-room hotel sold for $440 million.
- 234 West 42nd Street, the 44-story Hilton Hotel in Times Square sold for $242.5 million.
- 1517-25 Third Ave, a 153,252 sf parcel sold for $75.626 million.
- 600 Washington Street, a 135-unit residential building sold for $75 million.
- 780 Greenwich Street and 330 East 63rd Street, two residential apartment buildings, were purchased for $55 million and will be converted into luxury rentals.
- 625 Broadway, a 12 story office building sold for $37 million.
- 155 Spring Street, 43,750 sf building sold for $33 million.
- 142-144 Greene Street sold for $27.25 and will become the headquarters for clother Paul Smith.
- 111-117 West 72nd Street, a 19,900 sf retail and office building sold for $16.5 million.
- 676 Riverside Drive, a 74-unit apartment building sold for $15 million.
- 241-245 West 19th a two building site was purchased for $13.5 million and will be redeveloped as condos.
- 40 West 53rd Street, a 17,000 sf building was sold to the China Institute.
- 67-69 Lexington Avenue, a 5-story commercial building sold for $7.2 million and will be renovated into a 10-story residential condo.
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Noteworthy New York City Leases: |
- Vantone Company has signed a non-binding term sheet for 200,000 sf at 7 World Trade Center.
- Costco plans to lease 135,000 sf at the Harlem retail complex, East River Plaza.
- Home Depot will sign a lease for 107,000 sf at 345 Hudson Street for its third New York City location.
- CIT Group took 113,000 sf at 11 West 42nd Street.
- Spring Global renewed 80,000 sf at 104 West 40th Street.
- Coty Inc, the world’s largest fragrance company leased 75,000 sf at 2 Park Avenue.
- Federated Department Stores, parent company of Bloomingdales and Macy’s, leased 46,000 sf at 1120 Sixth Avenue.
- Thomas Hines took 40,000 sf at 335 Madison Avenue.
- New York Sports Club took 27,406 sf at Shops in Atlas Park in Queens.
- DHL leased 20,000 sf at 321 West 44th Street.
- HBO leased 10,000 sf at 1120 Sixth Avenue, The Hippodrome.
- Ted’s Montana Grill, a national chain owned by Ted Turner has leased 6,000 sf at 110 West 51st Street.
- Visual Goodness, a creative production company, signed a lease for 5,000 sf at 25 West 26th Street.
- The NCAA has leased 3,139 sf at 60 East 42nd Street.
- The New York City Economic Development Corporation has extended its lease through 2020 at 110 William Street.
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New York City Buildings for Sale: |
- 301 West 53rd Street a 225,000sf residential building is up for sale.
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