New York Market Overview
Highest Manhattan rents surpassing $200/RSF
With Class A market vacancies in Midtown at 5.1%, (levels not seen since 2001), Landlords are competing to see who can charge the highest rents. Highest asking rents of $225/RSF are reported for the top floors of 9 West 57th Street, $185 for the remaining floor at One Brant Park, to name a just a few. A sampling of 80 Class A Office buildings leased from April to September showed an increase in average direct lease rents from $99.00 to $107.50 per RSF.
Governor Moves Closer to a Costlier Javits Plan
The Spitzer administration told hotel industry executives that it is leaning toward an expansion plan for the Jacob K. Javits Convention Center that comes with a $3.2 billion price tag. Dismayed industry leaders, have told state officials they would oppose increasing the hotel tax to finance the plan. The expansion would add 200,000 square feet of exhibition space and 100,000 square feet of meeting room space and a ballroom.
New Developments
1 Madison, Elad Properties using air rights from SL Green Realty Corp’s 5 Madison Avenue to build a 900-foot-tall, 74-story tower apartment building. Daniel Liebeskind would be the architect on the project. Africa-Israel purchased the land marked Clock Tower at 5 Madison Avenue for $200 million with plans to redevelop the tower into residential units.
One Madison Park, or 23 East 22nd Street, is expected to be completed in fall 2008 and has a $35 million triplex penthouse still on the market.
Mayor Bloomberg
Mayor Michael Bloomberg and Borough president Scott Stringer supports Columbia University's proposed push north into West Harlem17-acre expansion plan. Columbia has agreed to spend $32.75 million on community projects in West Harlem, including affordable housing, a new park, landscaping for public housing and waterfront maintenance. City Planning Commission, the City Council and Mayor Bloomberg must allow rezoning for the expansion.
New homes sales have dropped to their lowest point since June 2000, according to a Bloomberg survey of economists.
While politicians urge lenders and struggling homeowners to work together to hold back a growing tide of foreclosures, a Moody's survey reported that sub prime lending services have changed only 1 percent of adjustable-rate mortgages that reached higher rates by July.
More than 40 billion Manhattan buildings have been sold to date, more than any previous full year. The question for the market is what effect will sub prime have and new lending standards have on market pricing?.
Upper West Side Down zone
The City Council has unanimously voted to downzone 51 Upper West Side blocks. With the tightening of air right transfers and limits of 14 stories on Broadway, ten to 11 stories on other avenues, and six to seven stories on side streets, high-rises like Extell Development's Ariel East and Ariel West can no longer be built.
The Real Estate Board of New York is launching a free public residential Web site that will have thousands of exclusive home listings. ResidentialNYC.com will contain sales and rental listings from participating REBNY members on a single Web site. More than 10,000 listings a day will be put on the site from the REBNY’s association's 12,000 members.
Freedom Tower
The Port Authority of New York and New Jersey is exploring to sell off parts of Freedom Tower. Deutsche Bank is also exploring the feasibility of bringing in equity partners.
WTC Site
Deutsche Bank Tower fire could stall development at WTC site as other buildings await the demolition of the Deutsche Bank Tower before their construction can commence.
New York City Retail Leases:
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- Total available New York City Retail Space increased from 1 million RSF to 1.01 million RSF.
- Midtown South Retail space vacancies increased from 0.66 million RSF to 0.71 million RSF.
- Midtown vacancy decreased from 0.22 million RSF to 0.19 million RSF.
- In Downtown, Retail vacancy decreased from 0.13 million RSF to 0.11 million RSF.
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New York City Industrial Leases :
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- Total vacant New York City Industrial Space stayed at 0.26 million RSF.
- Midtown Vacancy stayed at 0.11 million RSF.
- Midtown South Vacancy decreased from 0.15 million RSF to 0.14 million RSF.
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Manhattan Office Leases:
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- iStar Financial leases 130,000 rsf at 1095 Sixth Avenue.
- Fragomen, Del Rey, Bernsen & Loewy leases 120,000 rsf at 7 Hanover Square.
- J & W Seligman and Co. Inc.; Seligman Data Corporation leases 103,300 rsf at 100 Park Avenue.
- Ann Taylor leases 94,000 rsf at 1372 Broadway.
- Gemstar-TV Guide International Inc. leases 85,000 rsf at 11 West 42nd Street.
- Ruder Finn Inc. leases 81,984 rsf at 301 East 57th Street.
- SourceMedia leases 79,296 rsf at 1 State Street Plaza.
- Hampshire Designers Inc. leases 77,000 rsf at 119 West 40th Street.
- Porter Novelli leases 72,000 rsf at One Hudson Square.
- Emmet, Marvin & Martin leases 64,000 rsf at 120 Broadway.
- Interbrand leases 63,845 rsf at 130 Fifth Avenue.
- CRG West leases 51,000 rsf at 32 Sixth Avenue.
- NYU Hospitals Center leases 48,896 rsf at 673 First Avenue.
- The Harry Fox Agency leases 47,144 rsf at 601 West 26th Street (Starrett-Lehigh Building).
- Wal-Mart Stores LP leases 46,103 rsf at 1372 Broadway.
- Mizuho Trust and Banking Co. leases 44,790 rsf at 135 West 50th Street.
- Deluxe Entertainment leases 44,000 rsf at 435 Hudson Street.
- SourceMedia leases 42,460 rsf at 1 Whitehall Street.
- Oce Business Services leases 41,000 rsf at 460 West 34th Street.
- Parigi Group leases 40,719 rsf at 112 West 34th Street.
- Polo Ralph Lauren Corp. leases 35,0050 rsf at 625 Madison Avenue.
- GoldenSource Corporation leases 34,290 rsf at 22 Cortlandt Street.
- Computershare Ltd. leases 33,074 rsf at 199 Water Street.
- CBS Broadcasting leases 32,721 rsf at 555 West 57th Street.
- Farrar, Straus and Giroux leases 32,000 rsf at 18 West 18th Street.
- Jams Inc. leases 31,753 rsf at 620 Eighth Avenue (New York Times Building).
- Crowell & Moring leases 30,000 rsf at 153 East 53rd Street (Citigroup Center).
- Global Asset Management leases 26,668 rsf at One Rockefeller Plaza.
- Konica Minolta Business Solutions Inc. leases 26,400 rsf at 485 Lexington Avenue.
- Sunshine Realty Management leases 25,005 rsf at 12-14 Desbrosses Street.
- Taylor Global leases 25,000 rsf at 350 Fifth Avenue (Empire State Building).
- DiMaio Ahmad Capital leases 23,826 rsf at 245 Park Avenue.
- NBA Properties leases 22,841 rsf at 477 Madison Avenue.
- KPS Capital Partners LP leases 22,279 rsf at 485 Lexington Avenue.
- Fordham University leases 22,000 rsf at 1790 Broadway.
- Lectra USA leases 20,000 rsf at 25 West 39th Street.
- The American Numismatic Society leases 19,000 rsf at One Hudson Square.
- De Novo Legal LLC leases 17,500 rsf at 30 Broad Street.
- Corporate Suites LLC leases 17,250 rsf at 22 Cortlandt Street.
- New York Automobile Insurance Plan leases 16,750 rsf at 22 Cortlandt Street.
- Z-Brand leases 15,000 rsf at 42 West 39th Street.
- Surdna Foundation Inc. leases 14,332 rsf at 330 Madison Avenue.
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New York City Office Leases:
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- Total New York City Office Class A vacancies decreased from 11.59 million RSF to 11.19 million RSF.
- Total vacancy decreased from 20.09 million RSF to 20.08 million RSF.
- Total New York City Office direct lease vacancy decreased from 17.37 million RSF to 17.29 million RSF.
- Sublease vacancy increased from 2.72 million RSF to 2.8 million RSF.
- Total New York City Office Market vacancies decreased from 20.09 million RSF to 20.08 million RSF.
- Midtown South Office vacancy increased from 2.81 million RSF 3.04 million RSF.
- Total Midtown Office vacancy decreased from 11.42 million RSF to 11.28 million RSF.
- Total New York City Downtown vacancy decreased from 5.87 million RSF to 5.76 million RSF.
- Total vacant Office Space in Midtown New York City in sublease space increased from 1.77 million RSF to 1.78 million RSF.
- Total vacant direct space decreased from 9.65 million RSF to 9.50 million RSF.
- Midtown South Office direct lease vacancy increased from 2.50 million RSF to 2.67 million RSF.
- Sublease vacancies increased from 0.314 million RSF to 0.378 million RSF.
- Total Downtown New York City Office vacancies decreased with direct lease space decreased from 5.22 million RSF to 5.12 million RSF.
- Total vacant sublease space stayed at 0.64 million RSF.
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New York City Buildings Sold: |
- Westbrook Partners purchased 90 Lexington Avenue, a 13-story, 107-unit apartment building, containing 128,500-square-foot and was built in 1957 was sold for $30.5 million.
- 752 West End Avenue sold to Westbrook Partners for $85,787,799, pre war apartment building.
- Holiday Inn Soho, at 138 Lafayette Street, with 227 rooms and The Tudor Hotel, with 300 rooms, were purchased by The Procaccianti Group of Rhode Island.
- With the dollar falling to recent lows, foreign money is entering New York's real estate market. Some foreign purchases are: the Beekman, Eastgate Hotels and 222 East 41st Street.
- 250-252 West 14th Street, 2 mixed-use buildings, 12,436 sf total, was sold to a Manhattan investor for $10.625 million.
- 225 West 34th Street (14 Penn Plaza), a 22-story, 560,000 sf office building, was sold to Circle Properties for $350 million.
- 885 Third Avenue (Lipstick Building), a 34-story, 587,000 sf office building, was sold to Gramercy Capital Corp., SL Green for $317 million.
- 1372 Broadway, a 21-story, 508,000 sf office building, was sold to Wachovia Corporation for $284.75 million.
- 530-536 Broadway, a 2 office building, 190,000 sf total, was sold to Joseph Sitt, Thor Equities; Yaron Jacoby-led partnership for $190 million.
- 1040, 1050 and 1052 Sixth Avenue, 3 office buildings, a 267,000 sf total, was sold to Skyline Developers for $170 million.
- 104 West 40th Street, a 210,000 sf office building, was sold to Principal US Property Separate Account for $140 million.
- 691-699 Eighth Avenue, 306 West 44th Street, 309 West 43rd Street, Development sites, was sold to Tishman Realty & Construction for $128 million.
- 321 West 44th Street, a 10-story, 228,268 sf office building, was sold to Kushner Companies for $87.5 million.
- 229 West 36th Street, a 130,000 sf office building, was sold to Real Estate Capital Partners for $57.6 million.
- Harlem Portfolio of 8 mixed-use buildings, 189,000 sf total, was sold to Aimco for $53.75 million.
- 537-545 West 27th Street, a Development site, was sold to Jay Furman; Ron Moelis; Erik Ekstein for $42 million.
- 357 and 261 West Street, a 156-162 Leroy Street, a Development Site, was sold to Peter Moore Associates for $34 million.
- 1024-1030 Lexington Avenue, a 5-story, 24,000 sf office building, was sold for $32 million.
- 72-76 Greene Street, a 45,000 sf mixed-use building, was sold to Bear USA Inc. for $28.15 million.
- 241 Fifth Avenue, a Development site, was sold to 241 Fifth Ave Hotel LLC for $26.5 million.
- 30 West 21st Street, a 48,783 sf office building, was sold for $25 million.
- 315-321 Sixth Avenue, a Four 4- story mixed-use buildings, was sold for $17.2 million.
- 3270 Broadway, a vacant building, was sold to Columbia University for $10.4 million.
- 1-3 Orchard Street, a 4-story, 16,800 sf mixed-use building, was sold to Manhattan developer for $9.4 million.
- 117 and 129-131 West 123rd Street, 2 vacant lots, was sold to a Manhattan developer for $7.5 million.
- 125 Maiden Lane, a 3-story office condo, was sold to U.S. Fund for Unicef.
- 820 Second Ave, a 25,300 sf office condo, was sold to United Synagogue of Conservative Judaism.
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New York City Retail Leases:
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- GGMC Parking leases 23,609 sf at 627 West 42nd Street (The Atelier).
- Duane Reade leases 17,000 sf at 775 Columbus Avenue.
- EL Mundo Stores leases 11,267 sf at 4086 Broadway.
- Free People leases 6,000 sf at 79 Fifth Avenue.
- Ballroom Off 5th Studio leases 5,000 sf at 37 West 37th Street.
- Fabric Garden Inc. leases 4,911 sf at 231 West 39th Street.
- Commerce Bank leases 4,500 sf at 1873 Broadway.
- Bank of America leases 4,400 sf at 131 Eighth Avenue.
- JP Morgan Chase Bank leases 3,750 sf at 501 Second Avenue.
- Staples leases 3,556 sf at 261 Madison Avenue.
- Kentshire Galleries leases 3,500 sf at 700 Madison Avenue.
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New York City Buildings For Sale
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- 10 East Village, mixed-use buildings, are on the market with an asking price of about $160 million. The buildings are located at 141, 145, 147, 151, 157 and 156 Second Avenue; 24 St. Mark's Place; 111 East Seventh Street; 213 East Fourth Street; and 244 East 21st Street.
- 440 Ninth Avenue a 339,000 SF building class B building with leases rolling over in 2012.
- 1177 Sixth Avenue is reportedly for sale by Paramount Group for at least $1 billion.
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New York City Building Leases
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- America Online announced that it leased 152,000 square feet at 770 Broadway.
- Niche media publishing rented 45,000 RSF at 100 Church Street.
- National financial partners rented 99,485 at 340 Madison Avenue.
- Tribeca Associates and Square Mile Capital Management are expected to take a 99-year lease on a vacant 14-story Hudson Square warehouse. The building will be renovated into a 22-story office building and hotel. Construction is set to begin this month.
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