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The hybrid work model for the foreseeable future will continue which will create office demand destruction. Only 37% of New York-area workers went into the office in late March.

The average asking rent for Manhattan office space stood at $68.65 per square foot, following eight consecutive quarterly declines.

Street traffic has increased dramatically from tourism, residents returning and a portion of office workers returning. The increased foot traffic should create a bottom on the retail store pricing, as demand is picking up. Asking rents have fallen an additional 5% in the past year.

Hotel revenue from business travel will remain 23% below 2019 levels in 2022.

Brookfield sold a 49% stake in One Manhattan West to Blackstone in a deal that valued the 67-story office tower at close to $3 billion.

Developers signed 461 residential contracts worth $1.1 billion. The median unit sold for $1.61 million, or $1,641 per square foot. The median unit price has risen 25% since March 2021. Prices are stabilizing as mortgage rates rise.

New York Market Overview


Chase rents 8.7 million square feet in the city. Chase is trying to sublease 700,000 square feet at 4 New York Plaza in the Financial District and 100,000 square feet at its Hudson Yards office, 5 Manhattan West.

The national office vacancy rate is already 12.2%, the highest of the pandemic. It’s up from 9.6% at the end of 2019.

About 243 million square feet of office leases are set to expire across the country in 2022. Lease expirations are projected to exceed 200 million square feet in each of the following three years as well. Tenants are negotiating shorter lease extensions. The effects of a hybrid work environment will likely mean companies rent less office space.

MJHS inked 138K sf lease at 55 Water Street. Not-for-profit healthcare system MJHS signed a lease for more than 138,000 square feet at 55 Water Street.

Global Relay USA takes 77K sf at Durst’s 1155 Sixth Avenue, moving from 286 Madison Avenue.

Signature Bank adds an additional 33,000 RSF of offices at 1400 Broadway.

Hunt Slonem rented 37,000 square feet at Marin Management’s 595 11th Avenue. Slonem signed a five-year lease for the property, where the asking rent was about $52.


Retail rent average asking rent in Downtown Broadway fell to $316 per square foot, down 14% from the previous quarter and 22% from last year, the largest year-over-year decline among the 16 corridors.

Average asking rents along Fifth Avenue in the Plaza District fell to $2,524 per square foot, a 5% quarterly drop and 16% year-over-year decline. It was the first time since 2012 that average pricing on the corridor fell below $2,600.

The Taiwanese eatery Din Tai Fung signed a 15-year lease for 26,000-square-foot at its first New York City location, 1633 Broadway.

Maribella, a new high-end Italian chophouse, announced plans to take over the 17,000-square-foot former New York Yankees Steakhouse space at 7 West 51st Street.

Gucci is opening a 10,000-square-foot, two-level store in the Meatpacking District at 400 West 14th Street, on the bottom two floors of the five-story building between Ninth Avenue and Washington Street.

Valentino settled a lease dispute with its landlord at 693 Fifth Avenue. Terms were not disclosed.

Delmonico’s may close. Time Equities served the 185-year-old restaurant at 56 Beaver Street with an eviction notice. The landlord alleged the restaurant owed almost $300,000 in rent and other fees.

UBS predicts the United States will see between 40,000 and 50,000 store closures in the next five years. The worst outlook landed on clothing and accessories retailers, home furnishing companies and consumer electronic retailers. UBS is projecting those three retail categories will see 23,500 closures in the next five years.

Thor lost the roughly 27,000-square-foot property at 700 Eighth Avenue through foreclosure to a debt fund controlled by Paramount Group, which had lent $80 million against the property. The retail condo was valued at a little more than $45 million.

Building Sales:

Sales of new development condos in the NYC city just posted their strongest first quarter and third-most-active quarter overall since at least 2015 and reported 1,178 contracts signed for sponsor units asking a combined $2.9 billion.

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