The dam is lastly about to interrupt within the stalled Manhattan workplace leasing market — and landlords and brokers are able to pop Champagne corks after the slowest 12 months on report.
A minimum of a dozen giant offers of as much as 250,000 sq. toes every are near being executed, probably by 12 months’s finish, sources advised The Submit.
A number of the new leases are already “out” — which means they’ve been drawn up and ready for one aspect or the opposite to log out. Others are in superior talks and “buying and selling paper.”
Regardless of business actual property’s well-known woes, the offers may augur even bigger transactions — of as much as 1 million sq. toes every — in 2024, sources mentioned.
Manhattan’s present total availability fee is hovering almost 20%.
All however one contain expensively upgraded older towers, reflecting the so-called “flight to high quality.”
“In fact they’re going to be at redeveloped older buildings as a result of the brand-new ones, like 1 Vanderbilt and Manhattan West, don’t have any house left,” mentioned one supply.
It’s frequent for a flurry of enormous offers to shut earlier than Jan. 1 in any given 12 months, partly for tax functions — and in addition, as one veteran participant put it, “so the landlords, brokers, accountants and legal professionals can get out of Dodge in time for his or her winter holidays.”
Essentially the most tantalizing scenario is at repositioned, amenities-rich 22 Vanderbilt, the place proprietor Milstein just lately introduced Brookfield in to assist with leasing and advertising and marketing.
The tower just lately landed public relations agency Joele Frank to convey its 1.19 million sq. toes to 68% leased.
Now, sources mentioned, superior talks are ongoing with Bain & Co. for a whopping 250,000 sq. toes and for TD Financial institution to take 100,000 sq. toes — increasing from TD’s 200,000 sq. toes at SL Inexperienced’s 1 Vanderbilt subsequent door.
A rep for the constructing mentioned, “Nothing to report right here — no leases are out.”
One other pending quarter-million square-foot deal is for American Eagle at George Consolation & Sons’ 63 Madison Ave. The retailer’s places of work are at present at Chetrit Group’s 401 Fifth Ave. A second potential lease at 63 Madison is for Baruch School with 100,000 sq. toes.
A rep for Consolation declined to remark. Savills’ Mitti Liebersohn, the dealer for American Eagle, didn’t return an e-mail searching for remark.
A 100,000 square-foot lease for service provider banking agency BDT & MSD Companions at Olayan America’s redeveloped 550 Madison Avenue is “virtually a positive factor,” an insider mentioned. It might be a New York growth because the agency at present has solely about 33,000 sq. toes at 1 Vanderbilt.
The agency was shaped earlier this 12 months from the merger of Byron Trott’s BDT & Firm and MSD Companions, an funding agency that was backed by Michael Dell.
A rep for Olayan had no remark. The tower — which a dealer just lately advised us was “on hearth within the midst of a horrible market” —was almost 70% leased even earlier than a BDT & MSD deal.
Farther west, regulation agency Ropes & Grey is in “superior discussions” to take 240,000 sq. toes of Warner Bros. Discovery sublease house at Associated Firms’ 30 Hudson Yards. If a deal is struck, the agency would go away 1211 Sixth Ave., the place it has about 300,000 sq. toes.
The Sixth Avenue tower is house to New York Submit guardian Information Corp and to Fox Corp., which as we reported in January signed separate lease extensions by 2042. The media firms have a complete of almost 1.2 million sq. toes within the two 2 million square-foot tower owned by pension fund Ivanhoe Cambridge.
Cushman & Wakefield’s Josh Kuriloff and Mitchell Arkin, the leasing brokers for 1211 Sixth, didn’t return a name for remark.
Nevertheless, a number of different firms are vying for the Hudson Yards house, one in all which is Susquehanna Worldwide Group, now at 140 Broadway.
Even bigger offers may quickly be within the works. The Submit’s Lois Weiss reported that Blackstone, American Categorical and Jane Avenue Capital, amongst others, are scouting for about 1 million sq. toes every.