New York Market Overview

Office:

1. Deloitte leased 807,000 SF at 70 Hudson Yards, a planned office skyscraper.
2. Amazon leased 259,000 SF at 1440 Broadway.
3. The Bank of New York subleased 192,000 SF from Condé Nast at 1 World Center.
4. Piper Sandler leased 140,000 sf at 1301 Sixth Avenue.
5. Cushman & Wakefield leased 130,000 SF at 31 West 52nd Street.
6. Clear Street leased 88,000 sf at 4 World Center.
7. Salesforce added 71,000 SF at 3 Bryant Park.
8. The Farmer's Dog leased 58,000 SF at 568 Broadway.
9. WeWork leased 55,000 square feet at 245 Fifth Avenue.
10. American Eagle Outfitters leased 54,000 sf at 63 Madison Avenue.
11. The New York State Office of General Services leased 44,000 square feet at 1 New York Plaza.
12. Flexible Finance leased 41,000 sf at 300 Park Avenue South.
13. Tempus AI leased 39,600 SF at 11 Madison Avenue.

Manhattan median rent paid 2% to $4,600 in August, ending a record streak, as Brooklyn rents hit a new high. This decline follows a decline in mortgage rates and demand.

Cottonwood Group's new $1B fund for “special situations” has already deployed $300 million, primarily through loans with default-takeover options, focusing on new developments and restructurings.

Silver Creek Development has acquired the lease for the Wagner Hotel in Battery Park City, formerly the Ritz-Carlton. The hotel had been abandoned since the COVID-19 pandemic due to a messy, three-year bankruptcy process involving its prior owners, Urban Commons, which had amassed millions in debt. Silver Creek bought the loan in 2022 and sued Urban Commons for defaulting on its $96 million loan. Silver Creek plans to bring a new luxury hotel to Lower Manhattan.

CMBS distress hit a record 11.8% in August, marking the second straight monthly increase. All key distress metrics worsened, with delinquencies at 9.44% and the special servicing rate at 10.95%. Loans past maturity reached $38.8 billion, nearly two-thirds of the $61.1 billion tracked by CRED iQ.

Over the next decade, the city anticipates the construction of approximately 9,500 apartments in Midtown South.

Mount Sinai is set to open a 175,000-square-foot medical office building in East Harlem, a $190 million project by Slate Property Group and Evenhar Development. The 13-story building at 1578 Lexington Avenue will offer Mount Sinai's outpatient services (150,000 sq ft), a Children's Aid East Harlem Center (19,000 sq ft) with classrooms, a basketball court, and a gym/auditorium. It will also house a Mount Sinai employee daycare and Life Changes Church.

BXP cut its dividend by 30% ($50 million quarterly) to finance the $2 billion 343 Madison Avenue office tower. With Norges Bank withdrawing as a partner, BXP seeks a new partner to cover up to half of the development cost, thereby securing a $1 billion construction loan and potentially reducing BXP's costs to $500 million.

An undisclosed hedge fund has committed $1.2 billion across nine Extell projects. This significant investment includes a 1.8 million-square-foot mixed-use complex on the Upper West Side, situated on the former ABC campus of Disney.

Other projects benefiting from this funding are:

1. A 600,000-square-foot tower replacing the Wellington Hotel.
2. A 600,000-square-foot mixed-use development on East 86th Street.
3. An 800,000-square-foot condo-and-rental project on West 96th Street.
4. A 600,000-square-foot tower in Downtown Brooklyn.
5. A 576 Fifth Avenue office tower, anchored by Ikea.
6. The 655 Madison Avenue mixed-use tower, with Chanel reportedly interested in the retail condo.
7. The Torch, an 875,000-square-foot hotel and entertainment tower in Times Square.
8. The Deer Valley East Village redevelopment in Utah, which features a Four Seasons resort.

JEMB Realty settled with ASA College regarding 1293 Broadway. Yeshiva University has since occupied ASA's former location at 1293 Broadway.

Simpson Thacher & Bartlett is set to lease 700,000 square feet at 570 Fifth Avenue, the second-largest NYC office lease this year. The law firm may vacate its current location at 425 Lexington Avenue. Midtown asking rents averaged nearly $80 per square foot in the second quarter. The new 29-story office-and-retail tower will include an 80,000-square-foot Ikea.

Vornado is preparing to invest approximately $350 million in a new 475-unit apartment building at the northeast corner of West 34th Street and Eighth Avenue, utilizing the state's 485x program. Specific details on the income-restricted units at 484 Eighth Avenue have not yet been released.

Retail:

1. Aldi leased 25,000 sf at 312 West 43rd Street.
2. Harlem Furniture leased 24,000 sf at 250 Willis Avenue.
3. GMA Accessories leased 23,700 sf at 389 Fifth Avenue for a 12-year lease.
4. Sephora leased 7,800 sf at 1 St. Mark's Place.
5. Mamo leased 7,000 sf at 885 Third Avenue.
6. Stealth NY leased 5,000 sf at 67 West Street.
7. Funzy Play Family Club leased 5,000 sf at 2-20 Malt Drive for 15 years.
8. Tin leased 3,600 sq. ft. at 109 Ludlow Street for 10 years.
9. Utopia Bagels leased 3,500 sf at 875 Third Avenue.
10. Bottega Veneta leased 3,400 sf at 58 Gansevoort Street.
11. David Yun, Steve Choi & Yong Min Kim leased 3,300 square feet at 166 First Avenue for 10 years.

A 25-story tower, featuring a 10-story Louis Vuitton retail store, cafe, terrace, exposition space, luxury spa, showrooms, restaurants, and a top-floor bar and garden, will replace the Louis Vuitton Fifth Avenue flagship in the Plaza District. LVMH seeks a 25,000-square-foot floor-area bonus for subway improvements, including an ADA-compliant elevator.

Williamsburg is evolving into a premier retail destination, attracting high-end tenants. Over $372 million in retail buildings on North 6th have sold in the past year, with institutional players scrambling for properties. Rents have soared from $45 to $400-$500 per square foot.