Home News Lease deals at marquee NYC towers signals shift to new space race

Lease deals at marquee NYC towers signals shift to new space race

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The biggest new lease of the year is also the scariest for some market analysts. KPMG’s commitment of 450,000 square feet to Two Manhattan West is good news for Brookfield Properties, but Rudin Management’s 345 Park Ave. and 560 Lexington Ave., and SL Green’s 1350 Sixth Ave. It’s a different story for the three Midtown Towers. We will have a total of 800,000 square feet left when we move next year.

Experts cited elsewhere predicted darker times ahead for the Manhattan market with several other companies also slashing their floor space. is truncated in half. Transferred to Tishman Speyers Spiral the following year..

Reflecting a modest offsetting trend, law firm Freshfields Bruckhaus Deringer US has signed a contract for 180,000 square feet at the Silverstein property’s Third World Trade Center. This is an expansion from his current 110,000 square feet at 601 Lexington Avenue in BXP.

But while KPMG is giving up more space than Freshfields has added, the move has something in common: despite space givebacks being done in part by working from home, Manhattan bodes well for the future of

Many top deal makers argue that the bigger issue than just how much space is being absorbed or abandoned is the kind of space that is increasingly in demand.

Of course, that means new space, and the newer the better.

Freshfields Bruckhaus Deringer US has signed a contract for 180,000 square feet at the 3rd World Trade Center at the Silverstein property.
Freshfields Bruckhaus Deringer US has signed a contract for 180,000 square feet at the 3rd World Trade Center at the Silverstein property.
world trade center

The 2 Manhattan West and 3 World Trade are in a marquee league of towers that far outstrips towers that only opened 20 years ago. Their success in attracting first-class tenants mirrors Hudson Yards, Silverstein and others in the Durst Organization in Related. world trade center buildingTishman Speyer’s Spiral, SL Green’s One Vanderbilt, and L&L Holding Company’s 425 Park Avenue.

All could fill most or all of the expensive floors. Olayan Group’s solid early leases of 550 Madison Avenue and his 660 Brookfield are nearing full capacity, as both have been completely redesigned and virtually new. .

Mary Ann Tighe, CEO of CBRE tristate, a member of Silverstein’s leasing team at Three World Trade and chief leasing agent for 550 Madison, argues the market is too big and too complex to generalize easily Did.

“The reality of the situation is that it’s not a one-size-fits-all solution. It’s very nuanced and unique to every company,” she said.

“The only thing that comes out of all [the recent lease signings] New buildings and gut-renovated old buildings fit the profile of where tenants want to go, whether they’re expanding or contracting.

Tighe distinguished between “21st-century buildings,” which could be 23 years old before a new lease becomes effective, and “buildings built in the last decade.”

Downsizing companies are “going strategically to get into better buildings. It’s engaging and more conducive to bringing people back to the office.”

By using less space, businesses can reap the benefits of new construction, including better floorboards, more advanced electronic and mechanical infrastructure, and in-building fixtures, “without increasing the average annual occupancy cost.” .

W. Scott Horne, Director of Communications at KPMG, said of his company’s move:

“After shortlisting buildings that met these criteria, Two Manhattan West was unanimously selected,” Horne said.

But what about obsolete old buildings that can only be improved to some extent?
It does not minimize the challenges faced by owners, but it is easier to convert for residential use than modern ones. maybe.

As The Post first reported, JPMorgan Chase CEO Jamie Dimon quietly but forcefully Crackdown on remote workHe built a new headquarters skyscraper 270 Park Avenue —and he has no intention of using it for Zoom meetings.

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