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.
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.
Related Companies is set on bringing another office building to Hudson Yards.
Stephen Ross’ firm is planning a 1.3 million-square-foot project at 514 West 36th Street on Manhattan’s Far West Side. Although permits filed Monday describe it as 25 stories and 750,000 square feet, it will be larger.
