New projects set to transform top end of Manhattan – Business News
A wave of new development is poised to transform and enlarge the top end of Manhattan’s workplace market, whilst many older and underperforming buildings endure conversion to flats.
The new projects are in varied phases of development. Some are already in early phases of construction, 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 own proper, put the image collectively for Realty Check.
A rendering of 175 Park Ave. that’s beneath development by RXR and TF Cornerstone.
Thanks to supply-and-demand cohesion, no less than 4 projects are sure issues within the wake of JPMorgan Chase’s construction of its new headquarters skyscraper.
“There’s the Citadel tower nearby,” Riguardi stated — the Vornado-Rudin-en Griffin project often called 350 Park Ave. to break ground early subsequent 12 months. Two of Griffin’s Citadel corporations might be anchor tenants.
“Related is going to build 70 Hudson Yards for Deloitte,” he stated — a lease negotiated by JLL. And BXP, previously often called Boston Properties, is teeing up 343 Madison Ave., the place it has a tentative deal 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 may have its flagship store and the place Extell chief Gary Barnett is close to a deal with law firm Simpson Thacher & Bartlett anchor the project’s 1 million square-foot workplace portion.
Things get a little much less sure after these, Riguardi stated. “There are number of properties with lots of discussions going on but not underway yet,” he stated.
Most outstanding amongst them is 175 Park Ave., for which Riguardi is the leasing agent. The cloudbuster on East forty second Street to be developed by RXR and TF Cornerstone would devour the Grand Hyatt Hotel and rise to almost 1,600 toes. Tweaks are nonetheless being made to the design by architectural firm SOM.
Also in play are a potential Vornado supertall on the now vacant website of the previous Pennsylvania Hotel, the place JLL can be the leasing agent, and a smaller, unspecified SL Green project on the former Brooks Brothers store location at 346 Madison Ave.
Beyond these are main websites with giant query marks over them.
A rendering of Vornado’s supertall on the vacant website of the previous Pennsylvania Hotel.
Larry Silverstein and American Express are negotiating, beneath a veil of excessive secrecy, a attainable deal for a new tower at Two World Trade Center.
Even more mysterious is the destiny of the previous Roosevelt Hotel, the place proprietor Pakistan International Airlines is evaluating choices.
Office demand is so sturdy, “Everyone’s trying to figure out a way to find a development site,” Riguardi stated.
All the projects, whether or not in construction or proposed, will require leases “in excess of $200 per square foot,” Riguardi stated — “due to land costs, hard and soft development costs, high interest rates and the builders’ desired yields,” he stated.
Lever House has hit 100% occupancy, homeowners Brookfield Properties and Waterman Interests introduced. The leasing milestone coincides with completion of a $100 million renovation and restoration of the Midcentury masterpiece.
The Lever House at 390 Park Ave. is now totally occupied. Brian Zak/NY Post
The iconic, boutique-scale property at 390 Park Ave. had a troubled historical past after Lever mother or father Unilever moved to Connecticut in 1997 and earlier than Brookfield and Waterman acquired it near-empty in May 2020.
After the new landlords carried out in depth enhancements beneath the watchful eye of the Landmarks Preservation Commission, the building — flooded with gentle due to the small tower’s slim kind on the avenue — is now home to hedge funds, personal equity companies and what the landlords call “distinguished family offices.”
Expansions are nibbling away at what remaining obtainable space there’s at SL Green’s 245 Park Ave.
In the newest deal, longtime financial tenant EQT Partners added 38,358 sq. toes in an enlargement lease, bringing the firm’s complete dedication to 114,562 sq. toes — and the building’s occupancy to 95.7%.
EQT Partners lately added 38,358 sq. toes in an enlargement lease at 245 Park Ave. Christopher Sadowski
The asking rent was $190 per sq. foot. It was swift growth for EQT, which grew to become a tenant solely in December 2024.
The 1.8 million square-foot tower is present process what SL Green leasing head Steven Durels referred to as a “transformative redevelopment” that features a new plaza, storefronts and foyer overseen by KPF Architects. There are additionally a massive new wellness middle and a terra cotta overclad of the facade.
SL Green took control of 245 Park, which is now about 90% leased, in 2022.
