Two Sigma signed a renewal to keep its 265,000-square-foot offices at 100 Avenue of the Americas for another seven years, according to a source with knowledge of the deal. Asking rent was in the mid-$80s per square foot.
There is a revival of leasing activity in the more “commoditized” space, not just the Class A trophy space that heretofore has been the hallmark of the post-pandemic semi-recovery — one that has had owners of Class B and C buildings worried that a comeback at their level might never happen, meaning they will have to consider converting their buildings to another property type, like residential.
A Dick’s Sporting Goods subsidiary inked a deal with RAL Development to join its Union Square boutique office building.
GameChanger, a youth sports platform for live streaming, signed a 25,000-square-foot lease at Zero Irving, the New York Post reported. The company will occupy the 17th and 18th floors of the technology-focused property at 124 East 14th Street.
Stalled office occupancy, sluggish leasing activity, high construction costs, and rising interest rates have the pace of office construction well below pre-pandemic levels. Still, these developers are banking on future demand for premium space. Much of the strategy, like so much else in real estate, comes down to a well-worn adage: location, location, location.
The largest office projects proposed over the last 12 months are concentrated around major transportation hubs in Midtown, including three that will be a short walk from Grand Central Terminal.
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.
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.
