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Two more sports stadiums are announced ( Mets and Yankees) bring the total to four proposed stadiums in NYC. The market continues to tighten as new construction is delayed and existing space gets absorbed.
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Stadium News: |
- The New York Mets baseball team announced the development of a new $600 million stadium scheduled to open by the 2009 season. The new stadium will also be included in New York ’s push for the Olympics in 2012.
- The New York Yankees announced plans for a new $800 million dollar stadium as the centerpiece of a broad redevelopment of the Bronx riverfront. New York City will contribute $205 million to develop 28 acres of recreational facilities around the new stadium. The stadium will hold 51,000 people and should be completed for the 2009 baseball season.
- The New Jersey Nets Arena is one step closer to approval after developer Bruce Ratner and Julyor Bloomberg signed an community benefits agreement. The agreement promised affordable housing in the area and construction jobs for minority workers as well as discounts to arena events for local residents.
- The New York Jets stadium deal is not dead yet after the courts reaffirmed the Jets right to the rail yards. Hopefully the residential developers will subsidize the platform so the project will get built. The residential developers had a super deal and can probably afford to chip in a little to make the deal happen.
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Freedom Tower News: |
- The new design for a 2.6 million square feet Freedom Tower was announced -- addressing many of the security concerns that the NYPD had with previous design. The Tower will now be more conventional, slimmer and straighter. It will be set back 90 feet from West Street and will be set on top of a 200 foot concrete and metal pedestal designed to withstand any explosion. With the increased security the only remaining question is who is going to pay for the security changes.
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Buildings being Developed/Converted: |
- 985 Park is being developed as a 15 story high end condominium with prices at $2,000 per sf.
- 158 Madison Avenue is being developed into a 22 story building with 50 luxury loft condos for $100 million.
- The Dermont Company is developing two buildings totaling 700,000 sf. The first building will be between 51st and 52nd on 10th Avenue and the 2nd will be on 52nd and 53rd on 10th Avenue . The building will have 627 rental units, two movie theatres and street retail with a garage.
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Noteworthy Manhattan Leases: |
- Viacom has leased 305,000 square feet at 1540 Broadway.
- Bowne & Company leased 203,669 square feet at Water Street.
- Morgan Stanley leased 191,000 square feet at One New York Plaza.
- CIT Group has leased 130,000 square feet at 505 Fifth Avenue.
- National Sports Museum took 100,000 square feet at 25 Broadway.
- Thortan-Tomasetti, a design firm, leased 70,000 square feet at 51 Madison Avenue.
- First Albany Capital leased 62,000 square feet at 1301 Avenue of the Americas.
- Business Loan Express leased 51,771 square feet at 1633 Broadway.
- Creative Mega Playground took 45,000 square feet at 609 Greenwich Street.
- Thompson Hine LLP leased 38,531 square feet at 1114 Avenue of the Americas.
- American Capital Strategies leased 37,000 square feet at 505 Fifth Avenue.
- Phipp’s Houses, a non for profit, leased 33,000 square feet at 902 Broadway.
- Cantor Fitzgerald leased 31,000 square feet at 499 Park Avenue.
- Rafael Vinoly Architects renewed 28,320 square feet at 50 Vandam Street.
- Fairchild Publications added 28,000 square feet at 750 Third Avenue.
- Steve & Barry’s University Sportswear leased 27,000 square feet at the Manhattan Mall.
- Glenview Capital leased 26,000 square feet at the 767 Fifth Avenue.
- Major League Soccer leased 27,920 square feet at 420 Fifth Avenue.
- RCN Telecome subleased 23,300 square feet at 28 West 23rd Street.
- Synovate subleased 22,500 square feet at 360 Park Avenue South.
- Garan leased 21,750 square feet at the Empire State Building.
- Cantor Fitzgerald added an additional 20,500 square feet at 110 59th Street.
- Legg Mason Investment is moving in to 16,267 square feet at 640 Fifth Avenue.
- Z-Gallerie a home furniture store has leased 15,000 square feet at 443 Broadway.
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New York City Office Rental: |
- Total Manhattan Office Class A vacancies decreased from 19.15 million RSF to 18.94 million RSF, and Total Market vacancies increased from 32.59 million RSF to 32.92 million RSF.
- Total Manhattan Office Market Vacancies increased as Total Direct availability increased from 26.63 million RSF to 26.90 million RSF and Total Sublease Lease availability increased from 5.97 million RSF to 6.02 million RSF.
- Total Manhattan Office Direct Lease availability increased from 26.63 million RSF to 26.90 million RSF, while Total Sublease vacancies increased from 5.97 million RSF to 6.02 million RSF.
- Total Manhattan Office Market vacancy decreased as Midtown South availability increased from 4.74 to 4.77 million RSF and Midtown availability increased from 17.56 million to 17.83 million RSF. However, Total Downtown Vacancy rates increased from 10.29 million RSF to 10.32 million RSF.
- Total Vacant Office space in Midtown decreased led by a increase in Total Direct availability from 14.11 to 14.27 million RSF. Total Sublease space availability increased from 3.45 to 3.56 million RSF.
- Midtown South Office Direct Lease availability decreased from 4.14 million RSF to 4.26 million RSF, while Sublease vacancies dropped from 0.60 to 0.51 million RSF.
- Total Downtown Manhattan Direct Lease remained stable at 8.38 million RSF, while Sublease availability increased from 1.91 million RSF to 1.95 million RSF.
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New York City Retail Rental: |
- Total Manhattan Retail availability decreased slightly from 0.48 million RSF to 0.46 million RSF, however, with an increase in Midtown South availability from 0.17 to 0.18 million RSF while in Midtown availability decreased from 0.26 to 0.24 million RSF. In Downtown, availability remained at 0.05 million RSF.
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New York City Industrial Rental : |
- Total Manhattan Industrial Vacant space decreased from 0.53 to 0.51 million RSF. Midtown vacancy dropped slightly from 0.30 to 0.29 million RSF. Midtown South vacancy rates rose from 0.23 to 0.25 million RSF while available Manhattan Downtown Industrial space remains completely without available space listed.
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New York City Buildings Sold: |
- 85 Tenth Avenue a 559,000 square foot, former Oreo factory was sold for $500 million.
- 25 Broad Street was sold to Swig Equities for north of $200 million dollars for a condo conversion.
- 800 Sixth Avenue , a 266 unit luxury residential building is in contract for $195 million or $800,000 per unit. It is the highest price ever paid for a residential building on a per unit basis.
- 88 Greenwich Street was sold to Thorwood Real Estate for $195 million. They plan to convert the 458 unit rental building into condos and increase the retail portion by 70,000 square feet.
- 261 Fifth Avenue a 450,000 square foot office building was sold for $180 million and will be converted to residential condos.
- 759 Madison Avenue a 94,100 square foot residential building was sold for $158 Million.
- The 1,250 residential unit Riverton Houses in Harlem was sold for $135 million.
- 120-160 West 97th Street a 520,000 square foot rental apartment building was sold for $115 million.
- 485 Fifth Avenue a 205,000 square foot building sold for $86 million and is expected to be converted to condos.
- East 34th Street was sold for $73 million and plans are set to develop a 170,000 square foot condo with 171 units.
- 386 Park Avenue South a 210,700 square foot building was sold for $71 million.
- 25 Fifth Avenue a 107,410 square foot apartment building was sold for $46.3 million.
- 655 Sixth Avenue sold the retail portion of the building for $20 million to United American Land Company.
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New York City Buildings for Sale: |
- 250 West 50th Street , the Gershwin residential tower, is for sale and is expected to sell at $400 million.
- A 12,500 square foot empty lot is for sale in Tribeca where a 300,000 square foot apartment can be built as of right. The empty parcel is expected to reach prices north of $150 million.
- 504-515 West 34th a 10,000 square foot three parcel mid-block site is for sale for $30 million.
- 12 East 41st street a 95,000 square foot building is on the market.
- 30 Park Avenue a 238 unit apartment building is for sale.
- 85 East End avenue a 168 unit apartment building is for sale.
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New York Land Sold: |
- Ikea purchased a 48 acre site in Red Hook, Brooklyn for $31.25 million to build a 346,000 sf superstore. The store will be the largest in the United States at 346,000 sf and will cost a 100 million to build.
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