[NYguy]

https://www.costar.com/article/21212...-office-market

Trophy Tower’s Construction Milestone Highlights Widening Divide in New York’s Office Market
One Madison Avenue Will Be About 70% Leased When Completed Next Year, SL Green Executive Says





By Andria Cheng
December 13, 2022

As New York’s office vacancy rate surged to another record, well-located, top-tier office towers with appealing perks have bucked the trend, benefiting from a so-called flight to quality by tenants away from less up-to-date buildings. Now the latest example of the contrast between the real estate haves and have-nots is coming into sharper focus.

The class of high-end New York skyscrapers is getting closer to welcoming a new member, One Madison Avenue from Manhattan’s largest office landlord, SL Green Realty. The developer opened its last Manhattan trophy tower, One Vanderbilt, in 2020.

The 27-story One Madison celebrated its topping out Tuesday as worries about a looming recession, higher interest rates and other market wildcards have led big-name tenants including Facebook parent Meta to cut back on office expansion plans.

”Even though you could say the broader market has slowed on overall leasing velocity over the last three or four months, that doesn't mean it's necessarily true for every single building,” Steve Durels, executive vice president and director of leasing and real property of SL Green, said in an interview. “There are pockets of strength. New construction is still very strong in the marketplace, [especially] new construction at good locations.”

The building, which broke ground in 2020, has landed tech giant IBM as an anchor tenant. Investment firm Franklin Templeton also signed on at the building in New York’s second-largest office lease this year. Both firms will each have a footprint of well more than 300,000 square feet.

The building is 55% leased, a feat Durels told CoStar News was ahead even that of One Vanderbilt when the 1,401-foot tall building, now 99% leased, was a year away from completion. One Madison’s finish date is expected in late 2023.

Located across from Madison Square Park and nearby many new restaurants and hotels including the Ritz-Carlton, the 1.4 million-square-foot One Madison, which SL Green has touted as the first major development in Manhattan’s Midtown South in over a decade, also has signed Chelsea Piers Fitness in a 20-year retail lease.

Michelin-starred chef Daniel Boulud will open two new French culinary concepts including a European marketplace that’s inspired by the open-air markets of France as well as a full-service steakhouse. Building amenities will include a 11,000-square-foot roof deck featuring sweeping views that are connected directly to a 7,000-square-foot tenant-only amenity space called The Commons.