Articles of the week ending August 30th
Will Offices Come Back In Fashion_ Contrarian Buyers Are Betting Millions On It
By Ciara Long, Bisnow
Investors such as Menashe Properties are optimistic about a recovery in the office market despite high vacancy rates and discounts, while analysts are cautious due to the lasting effects of remote work and upcoming lease expirations.
SL Green Buys Debt On RFR’s Vacant Fifth Avenue Tower, Plans Partnership
By Ciara Long, Bisnow
SL Green Realty has acquired a $224M senior loan for RFR’s vacant 23-story office tower at 522 Fifth Avenue, planning a partnership for renovations and leasing, amidst RFR’s ongoing financial difficulties in the New York City office market.
Silverstein May Have A Tenant To Launch Final World Trade Center Tower
By Sasha Jones, Bisnow
Silverstein Properties is in negotiations with American Express to potentially become the anchor tenant for the long-planned 2 World Trade Center, which has struggled to secure financing due to the absence of a key tenant.
Private Equity Is Gobbling Up Parking Firms, Betting Tech Can Drive Value
By Jarred Schenke, Bisnow
The parking industry is experiencing significant consolidation and investment from private equity firms, driven by the adoption of advanced technology that promises increased operational efficiency and enhanced revenue potential.
News _ Tenants Sign Blockbuster Renewals To Help Buoy National Office Recovery
By Katie Burke, CoStar News
A significant number of corporate tenants are renewing large office leases, demonstrating a cautious approach to space usage amid ongoing adjustments in the wake of the pandemic, with many companies opting to stay in place rather than downsizing or relocating.
News _ After two years, available industrial space in New York is finally declining
By Victor Rodriguez, CoStar Analytics
New York’s industrial availability has decreased from a recent high of 9.2% to 9.1%, primarily due to reduced direct lease space and a slowdown in new construction, with about 74.6 million square feet now available for lease.
New York wants to freshen up Park Avenue. Here’s how that could benefit landlords
By Andria Cheng, CoStar News
New York City plans to revitalize Park Avenue by expanding the median with greenery, public seating, and amenities to attract office workers and tourists, ultimately benefiting landlords by enhancing property values and appealing to tenants seeking outdoor spaces in a post-pandemic market.
Nasdaq to vacate former Times Square headquarters
By Aaron Elstein, Crain’s New York Business
Nasdaq is vacating its Times Square headquarters at 1500 Broadway when its lease expires, while retaining its MarketSite television studio and corporate headquarters at 4 Times Square, amidst upcoming relocations of major tenants and potential financial challenges for the building’s owner, Tamares Group.
Manhattan office market turns in a solid but not spectacular August _ Crain’s New York Business
By Eddie Small, Crain’s New York Business
In August, Manhattan’s office market saw solid leasing activity with 2.6 million square feet leased, a 3.5% year-over-year increase despite a significant drop from July, highlighted by Christie’s lease renewal as the largest deal, while availability rates varied by neighborhood and average asking rents showed mixed trends.
Manhattan Office Leasing Ticks Toward 30M SF mark
By Elizabeth Cryan, The Real Deal
Manhattan’s office leasing activity has reached nearly 21 million square feet year-to-date, with potential to exceed 30 million square feet by year-end, driven by increasing foot traffic and significant tenant deals, despite a slight dip in monthly leasing volume.
Manhattan Office Leasing Keeps Pace with Historical Average
By Paul Bubny, Connect CRE
Manhattan’s office leasing remained steady in August, aligning with historical averages despite a notable drop from July, largely due to a significant expansion by Blackstone, while overall demand continues to exceed supply and sublet availability decreases.
Fewer Than 1 in 6 Office Buildings Ripe for Conversion
By TRD Staff, The Real Deal
Fewer than 1 in 6 US office buildings are suitable for conversion to residential properties, with Manhattan standing out at over 53% deemed viable candidates, while cities like San Francisco, Los Angeles, and Chicago also show notable potential for such redevelopment.