Photo of Manhattan office leasing in recession

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There’s even more harsh news about the pandemic-hit market as calls to convert some old Manhattan office buildings into homes, including those by the influential New York Real Estate Commission.

It’s scary to think, but the situation in Manhattan’s office leasing is getting worse every month. The large-scale uplifting deals signed in the spring and summer for AIG, TikTok and Facebook seem to be a distant memory.

According to CBRE’s latest activity report, year-to-date 11.87 million square foot leases were down 58% from last year. Total leases in November totaled only 482,000 square feet, a phenomenal change of 78% below the five-year monthly average of 2.16 million square feet.

The pitifully small number broke the record for the third minimum monthly lease this year. “I don’t say it’s free fall, but it’s much worse than just adjusting,” said a broker who didn’t want to be wisely named. He soon added, “I’ll recover, but it won’t be overnight.”

Among the other highlights of the CBRE report, if they are called:

  • Continued negative absorption boosted Manhattan availability from 11.1% in November 2019 to 14.8%.
  • What is struggling in Midtown South and Downtown is that the five-year monthly average for November fell by 94% and 90%, respectively.
  • In Midtown, the addition of subleases to the market reduced offer rent to $ 83.07 per square foot. In contrast, it was $ 84.16 in October 2019 and $ 87.03 in November 2019. The largest new block of Manhattan sublease space was 206,000 square feet on 55 Water Street at S & P Global. .. Downtown.

The backbreaker is not so dark

Even in the worst of times, there is a mass of good news.

There was a lot of ridicule when Brookfield Property bought a storefront for seven Bleecker Streets in four buildings between West 10th Avenue and West 11th Avenue for $ 31 million in 2018. At that time, the backbreaker was struggling to recover from the devastation of empty stores, including five in Brookfield. bought.

The developers used the creative team to spice up the block with art and culture programming under the names Love, Bleecker. Immediately followed by tenants. Currently, 6 shops are full and the 7th shop will be trading soon.

In the latest signed lease, global design shop Arc’teryx will launch an approximately 5,000-square-foot boutique on two levels on 367 Bleecker Street, and modern jewelery brand Tallinn Thomas will soon open its first physical store in 92 Perry. .. Holy.

Arc’teryx and Tallinn Thomas, Senior Vice Presidents of Retail Leasing at Brookfield, are referred to as “an exciting and growing brand that contributes significantly to the continued revitalization of this unique retail corridor.”

Noho Renaissance

Renaissance Property enjoys Reese Mini Spree in its atmospheric Manhattan office building. The company, led by father and son owners Ken and Bradley Fissell, has signed 16 new contracts so far this year.

Its flagship, NoHo’s 12-story 632 Broadway, will soon feature 15,323 square feet of unidentified fintech companies and 11,500 square feet of technology company Automattic. Built in 1897, the loft-style property is 80% leased and is also home to Serengeti Asset Management and Tumblr. Offer rents range from $ 32 per square foot on lower floors and $ 69 per square foot on higher floors.

The 150,000-square-foot site has a private tenant rooftop. It also boasts assets that appeal to tenants in the pandemic era. Two lobbies to help control the flow of people and large crate windows to let in fresh air.

“These buildings were designed to provide fresh air in the pre-air conditioning time,” said Bradley Fishel. “This vintage building, unlike modern buildings, creates ventilation. The most important thing right now is that tenants can rest assured.”

Approximately 32,000 square feet is 264 W. 40th St. And 62W. 45th St. It was also leased for a Renaissance Midtown property in Tokyo.

“Trusted” place

Trusted Media Brands is SL Green’s 750 Third Ave. From to the same landlord, 485 Lexington Ave. The approximately 15,000-square-foot lease is good news for tenants and SL Green, but JLL Vice Chairman Matthew Astrachan and Mitch Conscar. Power Brokers have represented Trusted Media Brands for 36 years.

Trusted Media has iconic brands such as Reader’s Digest and Taste of Home. It spans multiple digital platforms such as social media, magazines and books.

The company wanted to stay in the SLG portfolio, but was looking at direct leases rather than sublets like the 750 Third. In addition, on the floor of Lexington Avenue, there was an off-the-shelf unit that “checked a lot of boxes,” said Dean Durbin, CFO of Trusted Media. “In addition, SL Green has changed some maintenance procedures and protocols to address concerns about returning to the office.”

The landlord was represented by the JLL team, which included Paul Glickman and Jonathan Fanuzzi.

Photo of Manhattan office leasing in recession

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