A wave of new development is poised to transform and enlarge the top end of Manhattan\u2019s office market, even as many older and underperforming buildings undergo conversion to apartments.<\/p>\n
The new projects are in various stages of development. Some are already in early stages of construction, others with signed anchor tenants are poised to go vertical, and yet others are awaiting the magic cocktails of anchor tenants and financing to proceed.<\/p>\n
JLL\u2019s New York chairman and president Peter Riguardi, a prolific dealmaker in his own right, put the picture together for Realty Check.<\/p>\n
A rendering of 175 Park Ave. that is under development by RXR and TF Cornerstone. <\/p>\n
Thanks to supply-and-demand cohesion, at least four projects are sure things in the wake of JPMorgan Chase\u2019s construction of its new headquarters skyscraper.<\/p>\n
\u201cThere\u2019s the Citadel tower nearby,\u201d Riguardi said \u2014 the Vornado-Rudin-en Griffin project known as 350 Park Ave. to break ground early next year. Two of Griffin\u2019s Citadel companies will be anchor tenants.<\/p>\n
\u201cRelated is going to build 70 Hudson Yards for Deloitte,\u201d he said \u2014 a lease negotiated by JLL. And BXP, formerly known as Boston Properties, is teeing up 343 Madison Ave., where it has a tentative deal with CV Starr to be the anchor tenant.<\/p>\n
Extel, meanwhile, has started work on 570 Fifth Ave., another jumbo where Ikea will have its flagship store and where Extell chief Gary Barnett is close to a deal with law firm Simpson Thacher & Bartlett anchor the project\u2019s 1 million square-foot office portion.<\/p>\n
Things get a little less certain after those, Riguardi said. \u201cThere are number of properties with lots of discussions going on but not underway yet,\u201d he said.<\/p>\n
Most prominent among them is 175 Park Ave., for which Riguardi is the leasing agent. The cloudbuster on East 42nd Street to be developed by RXR and TF Cornerstone would consume the Grand Hyatt Hotel and rise to nearly 1,600 feet. Tweaks are still being made to the design by architectural firm SOM.
Also in play are a potential Vornado supertall on the now vacant site of the former Pennsylvania Hotel, where JLL is also the leasing agent, and a smaller, unspecified SL Green project at the former Brooks Brothers store location at 346 Madison Ave.<\/p>\n
Beyond those are major sites with giant question marks over them.<\/p>\n
A rendering of Vornado\u2019s supertall on the vacant site of the former Pennsylvania Hotel.<\/p>\n
Larry Silverstein and American Express are negotiating, under a veil of extreme secrecy, a possible deal for a new tower at Two World Trade Center.<\/p>\n
Even more mysterious is the fate of the former Roosevelt Hotel, where owner Pakistan International Airlines is evaluating options.<\/p>\n
Office demand is so strong, \u201cEveryone\u2019s trying to figure out a way to find a development site,\u201d Riguardi said.<\/p>\n
All the projects, whether in construction or proposed, will require leases \u201cin excess of $200 per square foot,\u201d Riguardi said \u2014 \u201cdue to land costs, hard and soft development costs, high interest rates and the builders\u2019 desired yields,\u201d he said.<\/p>\n
Lever House has hit 100% occupancy, owners Brookfield Properties and Waterman Interests announced. The leasing milestone coincides with completion of a $100 million renovation and restoration of the Midcentury masterpiece.<\/p>\n
The Lever House at 390 Park Ave. is now fully occupied. Brian Zak\/NY Post<\/p>\n
The iconic, boutique-scale property at 390 Park Ave. had a troubled history after Lever parent Unilever moved to Connecticut in 1997 and before Brookfield and Waterman acquired it near-empty in May 2020.<\/p>\n
After the new landlords conducted extensive improvements under the watchful eye of the Landmarks Preservation Commission, the building \u2014 flooded with light due to the small tower\u2019s narrow form on the avenue \u2014 is now home to hedge funds, private equity firms and what the landlords call \u201cdistinguished family offices.\u201d<\/p>\n
Expansions are nibbling away at what remaining available space there is at SL Green\u2019s 245 Park Ave.<\/p>\n
In the latest deal, longtime financial tenant EQT Partners added 38,358 square feet in an expansion lease, bringing the firm\u2019s total commitment to 114,562 square feet \u2014 and the building\u2019s occupancy to 95.7%.<\/p>\n
EQT Partners recently added 38,358 square feet in an expansion lease at 245 Park Ave. Christopher Sadowski<\/p>\n
The asking rent was $190 per square foot. It was swift growth for EQT, which became a tenant only in December 2024.<\/p>\n
The 1.8 million square-foot tower is undergoing what SL Green leasing head Steven Durels called a \u201ctransformative redevelopment\u201d that includes a new plaza, storefronts and lobby overseen by KPF Architects. There are also a large new wellness center and a terra cotta overclad of the facade.<\/p>\n
SL Green took control of 245 Park, which is now about 90% leased, in 2022.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"A wave of new development is poised to transform and enlarge the top end of Manhattan\u2019s office market,…\n","protected":false},"author":3,"featured_media":399690,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[5229,64,12611,2556,405,403,5226,5225,5228,5227,7746,23099,101775,4329,7747,67,586,132,5230,68,2969],"class_list":{"0":"post-399689","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-america","9":"tag-business","10":"tag-commercial-real-estate","11":"tag-development","12":"tag-new-york","13":"tag-new-york-city","14":"tag-newyork","15":"tag-newyorkcity","16":"tag-ny","17":"tag-nyc","18":"tag-office-buildings","19":"tag-park-avenue","20":"tag-penn-station","21":"tag-real-estate","22":"tag-realty-check","23":"tag-united-states","24":"tag-united-states-of-america","25":"tag-unitedstates","26":"tag-unitedstatesofamerica","27":"tag-us","28":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115600549911117260","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/399689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=399689"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/399689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/399690"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=399689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=399689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=399689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}