Articles of the week ending June 27th
Scholastic, publisher of Harry Potter, looks to sell SoHo headquarters _ Crain’s New York Business
By Aaron Elstein, Crain’s New York Business
Scholastic Corp. is exploring the sale of its SoHo headquarters at 555-557 Broadway to raise funds for debt reduction and share buybacks amid leadership changes and declining revenue.
News _ United Nations inks one of New York’s largest office leases this year
By Andria Cheng, CoStar News
The United Nations signed one of New York’s largest office leases of 2024, renewing and expanding to 425,190 square feet at 2 United Nations Plaza as part of a $500 million complex-wide upgrade.
News _ Tech office leasing rebounds nationally, fueled by AI demand
By Andria Cheng, CoStar News
Tech office leasing is rebounding nationwide—driven by AI demand and return-to-office policies—with markets like New York, San Francisco, Seattle, and Boston seeing significant activity, though leasing remains below pre-pandemic peaks.
News _ Office leasing edges higher with more usage
By Phil Mobley, CoStar News
Office leasing activity is rising in 2025, driven by increased workplace attendance despite stagnant job growth, as more knowledge workers return on at least a hybrid basis, boosting confidence among occupiers.
News _ Another Park Avenue tower in Manhattan filling up
By Andria Cheng, CoStar News
A global tech investment firm signed a 10-year lease at 450 Park Avenue, bringing the tower to 99% occupancy and signaling renewed strength in Manhattan’s Park Avenue office corridor amid a broader flight-to-quality trend.
New York construction industry braces for ICE enforcement surge _ Crain’s New York Business
By Eddie Small, Crain’s New York Business
Amid heightened federal immigration enforcement, New York construction firms are preparing for potential ICE site visits, prompting increased caution, communication, and a shift toward union partnerships to mitigate labor risks and project delays.
New York congestion pricing revenue hit a new peak in May _ Crain’s New York Business
By Caroline Spivack, Crain’s New York Business
Congestion pricing in Manhattan generated $50.1 million in May and $216 million since January, while reducing traffic by 10% and delays by 25%, supporting the MTA’s case to maintain the toll amid legal challenges.
Lifestyle Brand Life Time Takes 52K SF at PBC’s 10 Bryant Park – Commercial Observer
By Isabelle Durso, Commercial Observer
Life Time has signed a 20-year lease for 52,000 square feet at 10 Bryant Park, marking its NYC flagship and contributing to the building’s near-full occupancy as part of PBC’s successful repositioning of the property into a premier office and wellness destination.
Trump Drops $114M In Cash To Pay Off Mortgage At 40 Wall St
By Matt Wasielewsk, Bisnow
The Trump Organization paid off a $114M CMBS loan in cash for 40 Wall Street ahead of its maturity, avoiding refinancing challenges amid high vacancy and legal pressure from New York Attorney General Letitia James.
Sharpton Endorses SL Green’s Bid for Times Square Casino – Commercial Observer
By Isabelle Durso, Commercial Observer
Rev. Al Sharpton endorsed SL Green’s $4B Caesars Palace Times Square casino bid, which now includes a first-of-its-kind local investment model allowing New Yorkers to invest with as little as $500, boosting community buy-in as the developer prepares its official license proposal.
NYC casino bids finally due as 8 developers vie for a license _ Crain’s New York Business
By Nick Garber, Crain’s New York Business
With New York casino applications due Friday, eight major bids—including proposals from Steve Cohen, SL Green, and Silverstein—are vying for three licenses, with decisions hinging on economic impact, local support, and upcoming community advisory votes ahead of final selections by December.
Midtown New York Class A tower goes to foreclosure _ Crain’s New York Business
By Aaron Elstein, Crain’s New York Business
American Strategic Investment Co. is facing foreclosure on its Class A office tower at 1140 Sixth Ave. after defaulting on a $99M loan, citing insufficient funds to maintain the property amid rising vacancy and financial struggles.
LEK Consulting Inks 54K-SF Lease at 1166 Avenue of the Americas – Commercial Observer
By Amanda Schiavo, Commercial Observer
L.E.K. Consulting has signed a 10-year lease for 54,000 square feet at 1166 Avenue of the Americas, relocating from 114 West 47th Street to occupy parts of the 24th and 25th floors in the Midtown tower co-owned by EJME and Marsh McLennan.
Broadway producer John Gore acquires a portion of the Brill Building in Times Square _ Crain’s New York Business
By Julianne Cuba, Crain’s New York Business
Broadway producer John Gore purchased the lobby and top five floors of Times Square’s historic Brill Building for $28.8 million, acquiring part of the property where Carole King once wrote music, while Mack Real Estate Group retains ownership of the remaining floors
AI-powered firms flock to Industry City in Brooklyn _ Crain’s New York Business
By Julianne Cuba, Crain’s New York Business
Industry City in Brooklyn has rapidly become New York’s AI and tech hub, attracting startups and established firms with its collaborative environment, ample space, and modern amenities, fueling the city’s booming tech sector growth.
Adaptive Reuse Projects That Make Financial And Structural Sense – CRE Daily
By CRE Daily
Adaptive reuse is emerging as a key solution to the housing crisis by converting structurally suitable commercial buildings into residences, offering faster timelines and community benefits—when supported by the right economics, incentives, and regulatory alignment.
30 Broad St. sells to lender InterVest Capital Partners at foreclosure auction _ Crain’s New York Business
By Crain’s New York Busines
InterVest Capital Partners acquired the 48-story office tower at 30 Broad Street in a foreclosure auction for $1,000 after the previous owner defaulted on a $117.2M loan, with future plans for the property currently undisclosed.
‘People Are Nervous’_ Mamdani’s Stunning Upset Sends NYC Real Estate Reeling
By Ciara Long, Bisnow
Zohran Mamdani’s surprise win in the NYC Democratic mayoral primary has shaken the real estate industry, triggering investor anxiety, stock drops, and fears of a business exodus due to his progressive housing agenda and the uncertainty it brings.
‘Follow The Politics’_ Developers Slow To Return To New York City
By Sasha Jones, Bisnow
Despite New York City’s economic rebound, developers remain hesitant to return due to political unpredictability, burdensome regulations, and more favorable conditions in markets like South Florida.
Distressed Office Market Offers Buying Opportunities
By Trepp
Distressed office assets, especially older buildings with low occupancy and looming loan maturities, are creating growing acquisition opportunities as refinancing challenges mount and lenders shift from “extend-and-pretend” to potential asset sales.