East is the new West; tools to maximize space; value subleases

"Go East, Young Man!"

The story.

Most conversations about the New York office market tend to end up with a conversation about Hudson Yards and the migration of tenants West. But that's front page news at this point. The value play is Midtown East and there are some big hitters in the market who are saying East is where it's at! In fact, Boston Properties' President Douglas Linde in response to Could Manhattan's office market be shifting back east? said, "I think it's already happening." And on Vornado's quarterly conference call management mentioned how space in West Chelsea is more expensive than Park Avenue. Park Avenue as the value play? In some instances, it appears to be the case.

Any proof? 

A few big Midtown East deals announced in the last few weeks include: Greenberg Traurig signed a lease for 10% of One Vanderbilt,JPMorgan apparently close to taking the remaining 400,000 square feet of 390 Madison, King Street Capital signed for 60,000 square feet at 299 Park Avenue.

What it means for you. 

Midtown East still has some of the highest vacancies in New York City which equals a great opportunity for tenants looking for space.

In Other News...

2018 is the year of trees in offices.

Financial troubles have one landlord trying to sell 850 Third Avenue & 245 Park Avenue

Here's what financial companies are doing to better utilize their space and retain talent

Sensors are a tool companies are using to manage their space

Here are the best deals by the foot

20,000

Rockefeller Center. Seven-year sublease on a full floor with a brand new installation. More than $200 per square foot worth of work was spent on the space. Fantastic views of Rockefeller Plaza. 4 conference rooms, Open space or office configuration possible. Employee cafe, 3 supplemental A/C units. Deal in the $60's per square foot. Significant discount to a direct lease. 

7,000

High in the sky on Lexington in the 50's. Five year sublease. Full floor opportunity with six glass fronted offices and open seating for 14-16 people. Lease can be signed in the mid $50's per square foot and $15 less than comparable space available direct from a landlord.

11,500

Top floor of a Class A building less than one block from Grand Central. Very office intensive with sixteen offices makes it perfect for a law firm or accounting practice. A deal can be achieved in the $40's per square foot which is 50% discount to what a tenant would pay if they dealt direct for the space. There are 5 years of term left on this sublease. Extra bonus is the balance of the floor at 4000 square feet comes available at the end of the year.

WANT MORE DETAILS?

For an insider’s opportunity on some of the best deals in town, contact Gregg Cohen directly or  forward this newsletter to someone else.  

It's a beautiful day in the neighborhood

Biggest leases signed in the last month for tenants moving to new buildings, and those considering a move:

Midtown: WeWork signed 111,500 SF (square feet) at 750 Lexington Avenue.Greenberg Traurig leased 130,000 SF at 1 Vanderbilt. Columbia Management signed 38,000 SF at 485 Lexington.

Midtown South: Flat Iron Health signed for 100,000 SF at One Soho Square

Hudson Yards/Far West Side: Ernst & Young took another 70,000 SF at 1 Manhattan West. Gay Men's Health Crisis (GMHC) moving to 110,000 SF at 307 West 38th

Downtown: Primary took 48,000 SF at 26 Broadway. Bank of New York is reportedly moving to 101 Barclay Street from its 350,000 SF space at Brookfield Place.

Note: Year over year numbers suggest January '17 was more robust

Did you know? 

The way to find the nearest cross street to an address on Park Avenue ...

1. Drop the last number of the address (So, if you want to find cross street to300 Park Avenue, drop the number 0) 

2. Divide the remainder by 2. (30 becomes 15).

3. Add the "key number" in this case it's +35 (Every Avenue has its own number associated with it)

Answer: 50 = 50th Street

?Gregg Cohen

Office Leasing Specialist

Norman Bobrow & Co.

488 Madison Avenue, 

New York, NY 10022

W: 212.682.9843

M: 917.684.1764

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