Posted Oct 30, 2025, 1:55 AM
|
 |
New Yorker for life
|
|
Join Date: Jul 2001
Location: Borough of Jersey
Posts: 56,623
|
|
Meanwhile, here they say Related could be looking for an anchor tenant for 625 Madison...
https://www.credaily.com/briefs/anchor-tenants-revive-manhattan-office-market/
Anchor Tenants Revive Manhattan Office Market
Anchor tenants are fueling Manhattan’s office rebound, locking in Class A leases early and driving rents to new highs.
October 29, 2025
By Valerija CRE Daily
Quote:
Manhattan’s office market gains momentum as top firms pre-lease space in high-end towers years ahead, reports Commercial Observer. Developers from Hudson Yards to Fifth Avenue are moving forward with ambitious office projects. They’re backed by anchor tenants seeking premium space. In a competitive hiring and branding environment, top-tier offices have become a key differentiator.
In April, Deloitte inked a deal for 800K SF at 70 Hudson Yards—one of the largest leases in recent years. The building, developed by Related and Oxford Properties, isn’t expected to be completed until 2028. Similarly, Simpson Thacher took 700K SF at Extell’s 570 Fifth Avenue, and C.V. Starr signed on for 275K SF at BXP’s 343 Madison.
|
Quote:
According to industry leaders, the shift is driven by firms in finance, law, and consulting prioritizing in-office collaboration and using high-quality real estate as a recruitment tool.
“These growth sectors believe the office experience is essential,” said CBRE’s Mary Ann Tighe. “They’re looking to upgrade, and that means new buildings and large footprints.”
New office towers are rising across Manhattan. Projects include RXR and TF Cornerstone’s 175 Park Avenue, Related’s 625 Madison, Silverstein’s 2 World Trade Center, and BXP’s 3 Hudson Boulevard. Each is competing for tenants in a tight top-tier market.
|
Quote:
While new construction is underway, Manhattan’s total office inventory is shrinking. Between Q2 and Q3 of 2025, the city lost 16.7M SF of office space—mostly due to office-to-residential conversions, according to Savills.
The crunch is most evident at the top of the market. Vacancy rates for trophy buildings are down to just 7.6%, with Midtown trophy office rents hitting an average of $132.24 PSF. At iconic buildings like One Vanderbilt and the Seagram Building, rents are exceeding $200—and in some cases nearing $285 PSF.
|
Quote:
As developments like 343 Madison, 175 Park Avenue, and 3 Hudson Boulevard push forward, expect more anchor deals to follow. But even with millions of SF on the way, demand may continue to outpace supply in Manhattan’s high-end office market.
“This is one of the strongest markets we’ve seen in years,” said JLL’s Paul Glickman. “But when the music stops, we may not have enough seats for everyone.”
|
__________________
NEW YORK is Back!
“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.
|
Prev
Linear Mode
