Macquarie Signs First Lease at Fifth Avenue Office Tower Undergoing $400 Million Redevelopment
Australian financial-services company Macquarie Group signed the first lease at a new Midtown Manhattan redevelopment. The office tower is being overhauled in a $400 million redevelopment by Brookfield Asset Management which purchased a long-term lease of the property from the Kushners in 2018. The deal represents a milestone for Brookfield, which launched its leasing program during one of the most challenging office markets in recent memory.
New York-Presbyterian is the latest high-profile tenant to lease space at Tishman Speyer’s The Spiral in Hudson Yards.
The medical center said Wednesday it has reached a 20-year agreement to open an Och Spine outpatient care facility at the real estate firm’s under-construction, 65-story tower overlooking the Hudson River and the High Line.
Hedge Funds, Investment Firms Rare Bright Spot for Office Leasing
Hedge funds and investment firms are embracing office space in Manhattan, unlike many other companies that are retreating, Bloomberg reported. Financial services firms, insurers, private equity, hedge funds and asset managers accounted for 35 percent of new leases in the past two years by square footage, according to Savills Research.
Office Building Owners Drown in Tide of Sublease Space
Companies throughout the U.S. are flooding the market with office space they want to sublease, aggravating landlords already facing weak demand as more tenants embrace hybrid work.
In Manhattan, the amount of sublease space available is near record highs. According to Savills, more than 20.2 million square feet were available in the first quarter. That’s down from the 22 million square feet available a year ago, but well above the 13.6 million square feet up for grabs in the first quarter of 2020.
HSBC grabs 265K SF at Tishman Speyer’s Spiral
Tishman Speyer has reeled in another high-profile tenant to its brand-new Hudson Yards tower.
HSBC has signed a 20-year lease for 265,000 square feet at the Spiral, making the soon-to-open skyscraper the new U.S. headquarters for the London-based bank. HSBC will occupy three of the building’s 65 floors and is expected to move in by January 2024.
Brookfield Asset Management and China Investment Corporation are selling One New York Plaza, their 50-story office building in the Financial District, The Real Deal has learned.
The tower overlooking New York Harbor is 93 percent leased, according to an offering memo viewed by TRD. Its largest tenants are Morgan Stanley and the white-shoe law firm Fried Frank.
Blackstone Expands by 200K SF at 601 Lexington Avenue
Blackstone is committing to more space in the Boston Properties-owned 601 Lexington Avenue by adding 200,000 square feet to its footprint, Bloomberg reported.
Facebook Expands by 300K SF at 770 Broadway
Facebook isn’t done growing its Manhattan office presence. The social media giant signed a 300,000-square-foot lease to expand again at Vornado Realty Trust’s 770 Broadway, Bloomberg reported. It will bring Facebook’s presence to about 813,000 square feet in the property and give Facebook nearly total control of the 15-story building between East Eighth and East Ninth streets.