Posted Oct 16, 2024, 1:07 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
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https://commercialobserver.com/2024/...tan-2024-2025/
Office Building Facelifts Along Park Avenue Spur ‘Tightest’ U.S. Submarket
Take multiple building renovations, add a major transit hub, sprinkle in some reputational oomph — and you’ve got a boulevard’s post-pandemic surge
By Patrick Sisson
October 15, 2024
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.....a Midtown East rezoning passed in 2017 continues to offer opportunities for owners and developers to build and capture more of that premium top-floor rental revenue.
There’s already one plan in the works at Vornado’s 350 Park, the site of a future Foster + Partners skyscraper announced in April that will be occupied by Ken Griffin’s Citadel investment houses. A project spokesperson said the current building hasn’t been emptied of tenants, and the development aims to start the city’s land-use review process in 2025.
This development, and others like it, won’t be quick. With the exception of the empty lot on 405-417 Park Avenue, there’s no vacant land for office development on Park in Midtown, so clearing out tenants will take time. Then it can take up to two years to demolish an existing tower, and knocking down and rebuilding anything set on top of railroad tracks creates its own delays and difficulties.
As CBRE’s Tighe lays out, the equation is: Is it better to knock down and build bigger, completely renovate the building so it will lease faster, or end up trying to be the least expensive building on Park Avenue — and thereby always be full? She’s tracking a growing number of buildings beginning to insert demolition clauses into their new leases, because they want optionality.
Others are asking the same questions, too.
“If you look at the age of the buildings, there’s going to come a point where, if the buildings don’t do something, and maybe it includes adding new space, you can’t occupy them, because it’s just too old,” said Moinian’s Berger. “But there is data now that shows, well, if we do this, look at what we can achieve.”
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“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
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Ken Griffin and Foster are creating an utterly iconic structure.
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