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By: Benyamin Davidsons
As 2024 comes to a close, let’s take a look back at the New York City Office market over the year. There were fears that the high interest rates and the continued work-from-home trend would make a rebound difficult. Thankfully, however, for Manhattan’s best buildings this did not hold true. As reported by Realty Check, Class-A top buildings have enjoyed very healthy demand—so much so that tenants can’t find room to move or expand.
In Midtown, Singapore-based sovereign wealth fund Temasek, which has 27,000 square feet at the Seagram Building at 375 Park Ave., wanted to expand their space, but couldn’t find availability. Also, law firm Baker Hostetler, wanted to grow its current 90,000 square feet of space at 45 Rockefeller Plaza, but can’t find the space, per the Post. Bryant Park Corporation president Dan Biederman said, “Almost all of the landlords in our area are telling prospective tenants, ‘Sorry, we have no space left.’”
CBRE dealmaker Mary Ann Tighe said in a recent podcast: “If you are a tenant of 100,000 square feet or greater, you should have done your deal already. By the time we get to 2027, you’re going to have a problem.” Vacancy is between zero and 10% in sought-after areas including Park and Sixth avenues, and at top-tier “trophy” towers including the World Trade Center, Brookfield Place, Hudson Yards, Manhattan West, One Vanderbilt, and One Bryant Park.
Unexpected success stories included 28 Liberty St. Purchased in 2013 by Shanghai-based Fosun Five Holdings. The Chinese company did a great job renovating the former Chase Manhattan Plaza, so much so that offices and retail spaces there are now close to 100% full. It was even rumored this month that Fosun may sell the building for roughly twice the $715 million it paid for it, though the company denied the reports. Other efforts to invest in and modernize buildings were also fruitful. Per the Post, Empire State Realty Trust spent hundreds of millions of dollars to restore The Empire State Building. The iconic skyscraper, at 30 Rockefeller Plaza, of which Tishman Speyer owns 70% and Comcast the remainder, now boasts over a 90% occupancy rate.
Big name tenants include Lazard and Deloitte, and most recently global management consulting firm Kearney, who moved in from Seven Times Square, taking on the 78th and 79th floors. Tenants at the Empire State building can now enjoy 65,000 square feet of new amenities, including a fitness center, seven dining options, a lounge, basketball and pickleball courts and golf simulators.
More developers are taking the cue and investing in fancy upgrades for their buildings, including new lobbies, fancy air-filtration systems, electronic upgrades, outdoor spaces, health clubs, and even golf simulators—in a bid to lure in the best tenants and fill their office buildings. Paramount Group is spending over a quarter-million dollars to revitalize its vacant space at 60 Wall Street, the Post reported. The renovation will add public spaces as well as a new, podium-level facade. Similarly, at 295 Fifth Ave., Tribeca Investment Group, PGIM Real Estate and Meadow Partners are undertaking a $350 million redesign for the 100-year-old, 700,000 square-foot tower.
SL Green, the city’s largest commercial landlord, did well in its buildings filling up the retail space at the bases with posh restaurants. SL Green secured high-end eateries at his buildings including One Madison, 760 Madison Ave, 1185 Sixth Ave, and Eleven Madison Ave.
