A wave of recent growth is poised to rework and enlarge the highest finish of Manhattan’s workplace market, whilst many older and underperforming buildings bear conversion to flats.
The brand new initiatives are in numerous levels of growth. Some are already in early levels of building, others with signed anchor tenants are poised to go vertical, and but others are awaiting the magic cocktails of anchor tenants and financing to proceed.
JLL’s New York chairman and president Peter Riguardi, a prolific dealmaker in his personal proper, put the image collectively for Realty Test.
Because of supply-and-demand cohesion, a minimum of 4 initiatives are positive issues within the wake of JPMorgan Chase’s building of its new headquarters skyscraper.
“There’s the Citadel tower close by,” Riguardi stated — the Vornado-Rudin-en Griffin undertaking generally known as 350 Park Ave. to interrupt floor early subsequent yr. Two of Griffin’s Citadel firms can be anchor tenants.
“Associated goes to construct 70 Hudson Yards for Deloitte,” he stated — a lease negotiated by JLL. And BXP, previously generally known as Boston Properties, is teeing up 343 Madison Ave., the place it has a tentative cope with CV Starr to be the anchor tenant.
Extel, in the meantime, has began work on 570 Fifth Ave., one other jumbo the place Ikea can have its flagship retailer and the place Extell chief Gary Barnett is near a cope with legislation agency Simpson Thacher & Bartlett anchor the undertaking’s 1 million square-foot workplace portion.
Issues get rather less sure after these, Riguardi stated. “There are variety of properties with plenty of discussions occurring however not underway but,” he stated.
Most outstanding amongst them is 175 Park Ave., for which Riguardi is the leasing agent. The cloudbuster on East forty second Road to be developed by RXR and TF Cornerstone would eat the Grand Hyatt Lodge and rise to just about 1,600 ft. Tweaks are nonetheless being made to the design by architectural agency SOM.
Additionally in play are a possible Vornado supertall on the now vacant web site of the previous Pennsylvania Lodge, the place JLL can be the leasing agent, and a smaller, unspecified SL Inexperienced undertaking on the former Brooks Brothers retailer location at 346 Madison Ave.
Past these are main websites with large query marks over them.
Larry Silverstein and American Categorical are negotiating, beneath a veil of utmost secrecy, a attainable deal for a brand new tower at Two World Commerce Heart.
Much more mysterious is the destiny of the previous Roosevelt Lodge, the place proprietor Pakistan Worldwide Airways is evaluating choices.
Workplace demand is so robust, “Everybody’s making an attempt to determine a approach to discover a growth web site,” Riguardi stated.
All of the initiatives, whether or not in building or proposed, would require leases “in extra of $200 per sq. foot,” Riguardi stated — “as a result of land prices, arduous and comfortable growth prices, excessive rates of interest and the builders’ desired yields,” he stated.
Lever Home has hit 100% occupancy, house owners Brookfield Properties and Waterman Pursuits introduced. The leasing milestone coincides with completion of a $100 million renovation and restoration of the Midcentury masterpiece.
The enduring, boutique-scale property at 390 Park Ave. had a troubled historical past after Lever guardian Unilever moved to Connecticut in 1997 and earlier than Brookfield and Waterman acquired it near-empty in Could 2020.
After the brand new landlords performed in depth enhancements beneath the watchful eye of the Landmarks Preservation Fee, the constructing — flooded with gentle as a result of small tower’s slim type on the avenue — is now house to hedge funds, non-public fairness companies and what the landlords name “distinguished household places of work.”
Expansions are nibbling away at what remaining obtainable house there’s at SL Inexperienced’s 245 Park Ave.
Within the newest deal, longtime monetary tenant EQT Companions added 38,358 sq. ft in an enlargement lease, bringing the agency’s whole dedication to 114,562 sq. ft — and the constructing’s occupancy to 95.7%.
The asking hire was $190 per sq. foot. It was swift progress for EQT, which turned a tenant solely in December 2024.
The 1.8 million square-foot tower is present process what SL Inexperienced leasing head Steven Durels known as a “transformative redevelopment” that features a new plaza, storefronts and foyer overseen by KPF Architects. There are additionally a big new wellness heart and a terra cotta overclad of the facade.
SL Inexperienced took management of 245 Park, which is now about 90% leased, in 2022.
