New York Market Overview
Office:
Business leaders have started to accept that remote work is here to stay. IBM CEO Arvind Krishna recently said that only 60% of workers for the company would ever return to the office. JPMorgan Chase CEO Jamie Dimon, once a staunch advocate of in-person work, also altered company policies this year, while recognizing remote work’s staying power.Meta, Amazon pulling back on New York Office plans and are cutting back on expanding their office footprints in New York. Meta decided not to take an additional 300,000 square feet of space at 770 Broadway. Meta is also pausing a plan to build out its new offices in Hudson Yards.
Jay Suites signed a 12-year deal for three floors at 40 Wall Street for $40.00 per square foot.
Major tech firms still looking for space include Google seeking 500K RSF . MongoDB is seeking 300K SF, Oracle is looking for 200K SF TikTok, seeking 100K SF, . Klarna is also looking for a roughly 100K SF space.
Manhattan’s office market continued its struggle hovering around record vacancies.
Leasing volume fell 3.9% in the second quarter to roughly 7.3 million square feet of office space.
Leasing activity is up from 2021; 15 million square feet have been leased in the first half of the year, compared to 9.1 million square feet in the first half of 2021.
The average asking rent rose for the third straight quarter, hitting $75.61 per square foot and seeing increases in three straight quarters, for the first time since 2019. Still, the average asking rent is down nearly 5% from the start of the pandemic.
The downtown office market has a vacancy rate that reached a record 20.1%. Midtown vacancy rate had its biggest quarterly drop since 2018, falling to 16.4%.
Rising interest rates are threatening property values and the office index from the stock market is plummeting, as recession fears grow.
Alexander Wang is moving its headquarters to a lease for 46,000 square feet at 1 Fulton Street. The top-floor space will be constructed into a single, expansive floor column-free, with 29-foot ceilings.
iCapital adds 59,000 sf across two floors for a total of 141,000 sf footprint at One Grand Central.
Chicago Trading Company takes 68,000 sf at One Five One moving from 1129 Sixth Avenue.
Burlington is tacking on 34,000 square feet at 1400 Broadway and now will have 103,000 square feet.
Retail:
Central Park Boathouse is to shut as financials sink the restaurant. Owner cited rising labor, supply costs for the restaurant's October closure.Hale and Hearty “temporarily” closes 16 locations across Manhattan, Brooklyn and Long Island.
Athletic Propulsion Labs, signed a 10-year, 8,000-square-foot lease at 75 Prince Street for $400.00 per square foot.
Aritzia signs a 15,000 sf lease to open a two-floor store at 115 Fifth Avenue.
Lidl takes 35,000 sf at Madison International’s Elmhurst mall in 2024 replacing DWS.
