Anchin, Block & Anchin signed a 45,000-square-foot lease at 3 Times Square, the landlord announced Monday. The 10-year lease at 3 Times Square covers the entire 25th floor of the property, as well as part of the 24th floor.
KKR is the latest firm to bail on office plans as the sector continues to be shaped by remote work.
The private equity giant was looking at 300,000 square feet at Tishman Speyer’s 341 Ninth Avenue in West Chelsea Insider reported. The firm was considering the space near its Hudson Yards headquarters for possible consolidation of its other Manhattan office spaces but has since scrapped its plans.
One could be forgiven for thinking the workplace of Katten Muchin Rosenman LLP was a restaurant rather than a law office.
The 140,000-square-foot space — all of the fifth, sixth, seventh, eighth and 10th floors, and about two-thirds of the ninth at 50 Rockefeller Plaza — boasts a warming kitchen, where one can get everything from a cup of coffee to a full meal, not to mention plenty of places to sit down and eat with your food, both inside and out, plus grab-and-go pantries on each practice floor The offices, designed to serve the needs of some 160 attorneys as well as staff, represent corporate legal representation at its most up to date.
Some of the sector’s biggest names have been shedding office space across the country, subletting unwanted floors, and pausing construction on developments they spearheaded, the Wall Street Journal reported. The much-feared culprit of work-from-home policies has been replaced with another frightening omen: downsizing.
The big technology companies that drove U.S. office demand for years as they expanded their empires are now canceling leases and flooding business districts with office space as they downsize.
Facebook owner Meta Platforms Inc., Lyft Inc., Salesforce.com Inc., and other tech companies are shedding millions of square feet of office space in San Francisco, Silicon Valley, New York, Austin, Texas, and elsewhere. Amazon.com Inc. stopped construction on new office buildings in July amid a hiring freeze and is now preparing to lay off thousands of workers.
Bloomberg reported that prominent lenders for commercial properties, especially offices, are exploring sales of their loans in cities with low demand, including New York. JPMorgan Chase, Deutsche Bank, and Barclays are among them.
U.S. real-estate developers are delaying major office projects already underway or in the planning stages, discouraged by high vacancy rates and the reduction in workspace demand resulting from remote work.
Some property developers view periods of economic uncertainty and weak office demand as good times to launch new projects. Because large-scale developments tend to take three to five years or longer, developers bet that tenants looking to trade up in office quality will be drawn to modern offices with lots of amenities, just as the economy is gaining steam.
Rising interest rates haven’t just roiled the residential market in recent months — they’ve also taken a sizable bite out of commercial property prices. Commercial prices are down 13 percent from their May peak, according to Bisnow.
Manhattan saw 1.59 million square feet of office leased last month, a 40 percent drop from September and the lowest monthly total since May 2021, according to a report from Colliers.
A bevy of financial tenants, including M&T Bank and a new restaurant from chef David Burke, are headed to 277 Park Avenue.
In the largest of the seven deals, M&T took 93,000 square feet on the 24th through 27th floors to relocate its regional headquarters from 350 Park Avenue in the first half of 2023.
