TAMI tenants may prefer to hold a lunch meeting in Bryant Park with a Halal falafel and a $3 bottled water, but they demand first-class lobby concierge, wellness, gourmet food and more in the office. And it’s paying off. Large user tenants recently signed leases on New York’s West Side for >$100 per square foot that may include outdoor space, bike storage, fitness centers and pet-friendly facilities to help their organizations foster interaction, increase… Read More
Last week, JLL launched a mid-year update to the 2016 Skyline Report, which provides online access to current market intelligence for the most iconic offices across our skyline. JLL’s Skyline provides insights on office supply, demand, rents and leverage for the top-tier office market within CBDs and urban cores. Five key trends shape this update, and below see how they impact our City.
- Gone today, here tomorrow
Many markets are expected to enter a period of… Read More
Corporate real estate directors are constantly challenged to balance the opportunities of a dynamic capital markets environment with the operational and financial goals of their companies.
Many organizations follow a traditional course and have ownership or leasing strategies driven by longstanding financial policies. Some have implemented proactive strategies for selected properties—such as sale-leasebacks of owned assets or acquisitions of short-term leased assets—to take advantage of the current capital markets environment.
Historically these decisions have been driven by chief… Read More
New York Chart of the Week
- The overall average starting rent in Midtown South has increased by 70.5 percent since its post-recession low in 2010.
- Similarly, landlord concessions have risen as well. From 2011 to 2014, the average TI allowance more than doubled to $40.58 per square foot and free rent climbed from 4.9 to 6.7 months.
- As Midtown South’s … Read More
New York’s Trophy Buildings Continue to Outperform Larger Market
While Manhattan’s growing economic diversification into high-tech and other creative industries is welcome news for the larger economy, JLL New York’s research team has found that financial and legal services continue to drive occupancy and pricing at the top of the market. The majority of New York’s most expensive properties remain clustered around the Plaza District, but… Read More
ICSC – where retail and real estate meet
Anyone who is anyone in retail will be attending the ICSC National Deal Making Conference in New York from Monday December 8 – Tuesday December 9.
Join JLL retail experts in our private meeting space for giveaways and insights into the world’s best retail market.
Stop by the JLL Retail Booth from 8:30AM
Hall… Read More
- Vacancy rates down in all submarkets, building classes
- Overall Manhattan rents continue to rise in 3rd quarter of 2014
Despite moderate leasing activity during the third quarter of 2014, New York’s office market posted sharp drops in vacancy rates in every submarket and property type, according to JLL. The city’s overall vacancy rate has fallen to its lowest level since the third quarter of 2008.
Manhattan’s overall vacancy rate dropped to 9.7 percent this quarter, a decrease of 8.5 percent (or 0.9 percentage points) from 10.6 percent at midyear 2014. The city’s Class A vacancy rate fell to 10.6 percent in the third quarter of 2014, a decrease of 7.8 percent (or 0.9 percentage points) from 11.5 percent the previous quarter.
“The final quarter of the year is typically the most active in Manhattan, and brokers reported brisk building touring activity over the summer,” said Tristan Ashby, director of New York research.
“Going forward, we expect to see much higher rents throughout the city as vacancy rates continue to tighten. There are increasingly fewer opportunities at the very top end (Plaza Trophy) and very low end (Downtown Class B) of the market, or anywhere in Midtown South. Longer-term, large blocks will begin entering the market in Midtown beginning in 2018 as new construction, redevelopments and several large blocks vacated by relocating tenants come online.”
Overall average asking rents in New York rose to $64.91 per square foot this quarter, an increase of less than one percent from $64.57 per square foot at midyear 2014. The city’s Class A average asking rent grew to $71.66 per square foot in the third quarter of 2014, an increase of less than one percent from $71.28 per square foot the previous quarter.
Premiere Flatiron retail space hits market | JLL to lease two-level, 8,987-SF retail cooperative in historic district
Madison Capital recently selected JLL as exclusive leasing agent for the retail property at 129 Fifth Avenue. The firm will provide a full range of property marketing and transactional services for the 8,987-square-foot retail cooperative, currently occupied by Armani Exchange.
The JLL team handling the agency leasing assignment includes Amy Zhen, senior… Read More
Engineering firm signs 15-year lease to occupy entire 22nd floor, portion of 23rd floor at Class A, 2.3 MSF commercial office building
JLL recently completed a new, direct lease for AKF Group LLC at One Liberty Plaza in Lower Manhattan. The engineering firm signed a 15-year lease for 57,018 square feet at the Class A, 2.3 million-square-foot commercial office building owned by Brookfield.
The tenant was represented by Paul Mas and Michael Shenot, managing directors; Ruby Hwang, senior vice president; and Roxanne Tehranian, associate, all with JLL.
Brookfield was represented in-house by Jeremiah Larkin, senior vice president and director of leasing, and Duncan McCuaig, vice presidents of leasing, along with Newmark Grubb Knight Frank team of David Falk, principal and president of the New York tri-state region; Peter Shimkin, executive managing director; Hal Stein, managing principal; and Nick Berger, managing director.
“AKF Group is relocating its entire New York operations from the Times Square district to Lower Manhattan,” said Shenot.
“Lower Manhattan continues to attract a diverse range of tenants from outside of the traditional financial services sector. We’ve seen similar commitments this year from media firms, technology groups and across all business service sectors.”
AKF Group inked the 15-year lease and will occupy the entire 44,378-square-foot 22nd floor and a portion of the 23rd floor at One Liberty Plaza, located directly across from the World Trade Center between Liberty and Cortlandt streets in Lower Manhattan. The engineering firm is consolidating its presence Downtown from locations at 1501 Broadway and 330 West 42nd Street in Midtown.… Read More
Zhen joins JLL as a Senior Vice President specializing in urban agency leasing in New York City
JLL is continuing the expansion of its retail platform in New York City with the addition of Amy Zhen. Zhen will serve as a Senior Vice President working on the team lead by Vice Chairman Bob Gibson, who joined JLL earlier this year to lead the firm’s New York retail brokerage practice.
In her new role, Zhen is tasked… Read More