An actual property asset supervisor isn’t being swayed by the murky image of Manhattan’s workplace market, as an alternative inking a deal to just about double its area.
Cohen & Steers signed a lease for 161,000 sq. toes at 1166 Sixth Avenue, an individual with information of the deal instructed the Industrial Observer. The lease is for 15 years and the asking lease was $87 per sq. foot.
The constructing’s possession construction is advanced, however the two flooring being leased by the asset supervisor are owned by Marsh McLennan; the opposite a part of the constructing is owned by Minskoff Equities.
The corporate is transferring from SL Inexperienced and Vornado Realty Belief’s 280 Park Avenue, the place it has occupied 87,000 sq. toes for the previous decade. Cohen & Steers has lengthy held SL Inexperienced inventory.
Whereas the non-Park Avenue area sits farther from Grand Central Terminal, the transfer permits Cohen & Steers to extend its workplace footprint by roughly 74,000 sq. toes. It could additionally permit the corporate to avoid wasting on value per sq. foot, though the asking lease at 280 Park Avenue couldn’t instantly be decided.
A CBRE crew together with Michael Geoghegan and Michael Wellen represented the tenant, whereas a Newmark crew together with David Falk and Andrew Sachs represented the owner.
Cohen & Steers is about to maneuver into its new digs within the fourth quarter of subsequent yr.
Amid hybrid work preparations, corporations have made headlines by trying to downsize or sublet their area. Regardless of the anecdotal proof, Colliers information present Manhattan is definitely coming off its busiest month for the reason that begin of the pandemic. Roughly 3.4 million sq. toes of workplace area was leased final month, probably the most since January 2020.
House is changing into tougher to seek out in Midtown, particularly, the place the Sixth Avenue workplace is situated. August marked the sixth consecutive month of newly leased area exceeding newly out there area within the central enterprise district.
However, the out there workplace area in Midtown has elevated by 36 p.c since March 2020, although that’s significantly better than Manhattan’s 67 p.c improve in the identical timeframe. The common annual lease per sq. foot in Midtown final month was $79.55.
— Holden Walter-Warner