New York City office
and retail Market Research

January 2016

January 2016 » Market Analysis » NY New Developments

January 2016: New York New Developments

New Developments

Overseas retail Brands operate 39% of the stores on Fifth and Madison Avenues and in Soho. Of the 906 retailers, Soho is the most nationally-diverse area, with 24 countries represented. Fifth Avenue had 17 non-U.S. outlets and Madison Avenue had 13. Italianstores had the largest number of stores in those areas.

Footlocker and Nike signed leases for large spaces on Broadway. Footlocker signed a $15 million deal to lease 36,000 square feet at 1460 Broadway and Nike signed a $16 million lease for 55,000 square feet at 529 Broadway.

Gap signed two leases at 1514 Broadway, into two stores for its parent brand, Gap and Old Navy. The Gap will take up 31,000 square feet, 6,000 square feet on the ground floor and 25,000 square feet on a lower level as well as signage at the top of the Bow Tie Building. Old Navy will take 32,500 square feet and build an additional floor that will bring its total space up to just under 50,000 square feet.

Toys R Us is a Times Square landmarkand will close its doorsleaving its 110,000-square-foot flagship store at 1514 Broadway due to rising rents. Asking rent for the building's ground floor was $2,500 per square foot, with $350 per square foot asked for the second floor and $150 per square foot for the below-grade level.

Victoria's Secret signed a new flagship store at 640 Fifth Avenue, near 51st Street. The multi-level 63,780-square-foot store is expected to open in November 2016. The deal, which had an annual starting rent of $34 million, was the second most expensive retail lease in Manhattan of 2015.

The owner of Gansevoort Marketis planning to open additional food halls in the Grand Concourse and in two other areas of the city.The market will also relocate from its current Meatpacking District location 52 Gansevoort Street, which is being redeveloped to a 12,000-square-foot space at 353 West 14th Street.

Sam Pa, A shadowy Chinese energy tycoon who was recently arrested in a Communist Party corruption probe, is responsible for keeping 23 Wall Street out of commission since 2008. Sam Pa has failed to find a tenant for the 101-year-old landmark building, which is across from the New York Stock Exchange.

Ocean Grill sued a partnership led by GTIS Partners, claiming that the company's condo conversion at 101 West 78th Street cost them $6.3 million in income from Jan. 1, 2013 to Nov. 30, 2015 by erecting scaffolding and a construction elevator in front of the building which drove away customers, forcing the restaurant to close its doors after 18 years in business.

The latest plans for the four-story base of the towersat 76 11th Avenue will consist of 242,750 square feet of combined retail and office space. Retail will occupy the cellar level, first and part of the second through fourth floors of the building, while offices will also share space on the second through fourth floors. The total square footage of the project is slated to top 800,000 square feet, including the residential component. The towers are slated to rise 402 feet and 302 feet, respectively.

Clarion Partners bought a 70% interestin the American Stock Exchange Building in the Financial District for $105 million. The historic property is located at 86 Trinity Place. The building has 182,000-square-foot. The investors reportedly planned to lease out the lower floors of the building, including the ground-floor area to retailers while transforming the rest into a 174-room hotel.

The city's Economic Development Corporation moved forward with its East 125th Street Development project. The RFP calls for the commercial redevelopment of a 7,000 square foot site at 2321-2325 Third Avenue, which is currently a vacant lot. With the project, dubbed E125, the city ultimately aims to build 100 apartments, about 80% affordable, as well as 700,000 square feet of commercial space, including 50,000 square feet reserved for local businesses and at least 30,000 square feet to be used for community facilities.

Kuafu Properties went on a $700 million-plus Manhattan spending spree, the Chinese development firm Kuafu is headquartered in Times Square, and announced plans with Siras Development to build a 47-story, mixed-use tower on the Far West Side topped off by a restaurant targeted at an international clientele.

Related Companies">Related Companies and Oxford Properties Group">Oxford Properties Group secured $5 billion in construction funding for a 90-story office tower and connected mall at Hudson Yards. The announcement marks a major step towards completion of the megadevelopment on the far West Side.

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