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Why NYC companies are betting on big office space

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By exploring options and committing to new spaces, Jumbo City tenants are looking to the future, not the pandemic past.

The $200-per-foot deal turned into $100-per-foot in the old days, and $300-per-foot has been achieved at both One Vanderbilt and L+L Holding’s 425 Park Avenue, which officially opened today. rice field.

Colliers Tri-State Region President Michael Cohen said:

Mitti Lieberson, chairman of New York brokerage firm Savills, closed 16 deals over 100,000 square feet in the third quarter, compared with 11 deals in the second quarter. Already he has 25 million square feet under contract, so in 2022 he will surpass his lease of 26 million square feet last year.

Recent major commitments to new buildings include KPMG and DE Shaw, renting 456,000 and 283,421 square feet respectively, both located in Two Manhattan West next to Brookfield.

One Vanderbilt closed a deal for $300 per foot.
Paul Martinka

Franklin Templeton has signed a contract for 347,000 square feet in SL Green Realty Corporation’s reinvented high-rise on One Madison Avenue. The project already has 328,000 sq ft and 56,000 sq ft reported at $145 per sq ft, a project that earned him IBM at Chelsea Piers Fitness.

Moinian Group EVP Ted Koltis said: .

So, on the east side of Grand Central Terminal, TF Cornerstone plans a 2-million-square-foot Jumbo Tower at 175 Park Avenue with offices and Hyatt-branded hotels. The broker said Blackstone is considering his million-square-foot glass-and-steel space.

Rendered interior of Penn 1.
Company executives know that working from home won’t last long, and they’re looking for the best office space in buildings like Penn 1.
Bornado Realty Trust

The Volnedo building near Pennsylvania Station is hooking tenants with 300,000 square feet of leasable space in Pennsylvania 1 alone. Blue Cross Blue Shield recently moved into his new Gensler-designed 70,000 square foot office.

Bloomberg has signed a lease for a tower of the same name at 731 Lexington Avenue in 2029, and its owner, Steve Ross’ Vornado Realty Trust, will replace Hotel Pennsylvania, Penn 15, with their tower. is definitely what you are looking for.

Apple is also seeking 1 million square feet, another contender for Penn 15 as a growing tenant in Vornado’s Penn 11.

Appearance of Pen 1.
Class A office space in newer towers like Penn 1 is seeing strong demand, achieving top leases and leaving older, less desirable buildings stuck.
Bornado Realty Trust

Attorneys at Freshfields Bruckhaus Deringer US expanded to 179,724 square feet at Silverstein Properties’ 3rd World Trade Center, one of several deals made in the WTC building.

“It’s a great headline to see these deals taking place, but the subtext is who will absorb the space they’ve left behind,” said Jeff Peck, vice chairman of Savills.

Older buildings that are ill-equipped will struggle to retain tenants, said Greg Cohen, a partner at Cresa, adding that “competition is increasing.”

A look at the Penn 2.
Penn 2 is landing a similarly expensive lease.
Bornado Realty Trust

To make a good first impression, the RXR’s lobby no longer has floor stickers 6 feet away. “For someone who’s been out of the office for a few years, it’s like the first day of school,” said EVP Bill Elder. Environmental and sustainability issues are also important when evaluating a space, said Josh Krylov, executive his vice and chair of Cushman & Wakefield.

Retaining and attracting tenants is putting downward pressure on rents on older, mid-block side street properties. Some have rents around $30 per foot.

This is great news for smaller businesses, service professionals, and nonprofits that can’t afford to look glamorous. But when it comes time to refinance, it can be a death knell for owners with high-value loans and low-interest debt.

“Mid-tier tenants in mid-rise buildings will not be as quick to renew, relocate, or trade, which will cause a great deal of pain to these Class B-minus buildings,” Peck said.

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