Just like the proverbial elephant examined by 5 blind males, the 460 million square-foot Manhattan workplace market lends itself to many alternative interpretations. There’s a statistic to help each perspective.
A brand new report from CBRE cheerfully cites a close to 100% rise in year-over-year leasing exercise for the primary quarter of 2022. The 5.68 million sq. toes of transactions have been up 96% over the primary quarter of 2021.
Such massive offers as IBM Inc. at 1 Madison Ave. (328,000 sq. toes), PDT Companions at 60 Columbus Circle and Celonis at 1 World Commerce Heart (75,000 sq. toes) counsel a serious market rebound.
Common Midtown asking rents climbed 2% over the earlier quarter. Midtown South leasing quantity was up for the third straight quarter. Downtown’s quarterly absorption was optimistic for the primary time for the reason that third quarter of 2019.
All excellent news, proper? However there’s a special soak up JLL’s newest “Workplace Perception” letter. The brokerage discovered rising vacancies throughout the board, due partially to sublease additions surpassing demand.
It famous that first-quarter leasing was greater than in early 2021 however 25% under the fourth quarter.
Massive new sublease availabilities “pushed emptiness as much as the best ranges recorded for the reason that onset of the pandemic at 15.2 %.”
Neither set of information is incorrect — it’s quite a matter of selecting which side of the market to emphasise.
In the meantime, Placer.ai, a web site that tracks workplace constructing foot visitors, experiences an enormous 102% enhance in foot visitors to Manhattan workplace buildings in February over the identical month in 2021. However the visitors was nonetheless 46.7% beneath January 2020, simply earlier than the pandemic struck.
“The town is springing again to life as of the start of April, but it surely’s been sluggish going,” the positioning mentioned.
In one of many yr’s largest new subleases, Phaidon Worldwide is taking 71,239 sq. toes at SL Inexperienced’s 711 Third Ave. The worldwide specialist recruitment company will transfer from 622 Third Ave., the place the agency had solely about half as a lot house.
Cushman & Wakefield’s David Mainthow represented Phaidon. JLL repped the sublandlord, the Stagwell Group.
Phaidon CEO Harry Youtan mentioned the transfer “is the subsequent step of an distinctive eight years of development in New York. It should permit us to rent and develop 200 extra employees, taking our New York workforce to 500 in whole.”
“The house was delivered in move-in prepared situation, leading to little upfront capital funding and development time, which provided an amazing answer for Phaidon’s thriving enterprise,” mentioned Mainthow.
The brand new handle is a 592,772 square-foot tower one block from Grand Central Terminal. It was renovated with enhancements that embrace new elevator cabs, massive home windows and a three-level parking storage.
Marx Realty’s 10 Grand Central, a 500,000 square-foot Midcentury tower at Third Avenue and East forty fourth Avenue, continues to refill — because of a current, $48 million capital enchancment program and repositioning.
Of 34,000 sq. toes of newly signed and expanded leases, the most important was a 12,000 square-foot enlargement of HLTH, a convention organizer for well being innovation. The brand new lease, plus a renewal on house it already had, upped the agency’s footprint within the constructing from 7,000 to 19,000 sq. toes.
Marx additionally signed 15,000 extra sq. toes for LIV Golf Inc, Household Administration Corp and Kasa Residing. On the retail entrance, fast-casual Mediterranean eatery CAVA is coming to 2,600 sq. toes of ground-floor nook house.
Marx transformed extra than half of 46 beforehand unused out of doors terraces for tenant use. Upgrades additionally embrace a brand new, four-story entry portal on East forty fourth Avenue with walnut doorways main right into a modern foyer, and an indoor-outdoor membership ground with its personal lounge, convention house and landscaped terrace.
One extra sweetener: Israeli-made “Solato” machines that allow tenants make multi-flavored gelato in a matter of seconds. Realty Test can attest that the vanilla, not less than, is the actual deal.
About 65,000 sq. toes stay accessible — which pleases Marx CEO Craig Deitelzweig, since outdated tenants have been paying rents far under in the present day’s market. Asking rents at 10 Grand Central now vary from $65 to $120 per sq. foot.