NEW YORK | 350 Park Avenue | 1,600 FT | 62 FLOORS

[DCReid]

Originally Posted by NYguy

I wonder why the city chose to push this tower as a symbol of rebirth, rather than 175 Park, especially considering the formal review won’t begin until Jan or Feb. But I’m guessing a lot has to do with the anchor tenant (Citadel) making that committment. Even if that happened a year ago. Still, when 175 Park announces a tenant, I’m sure the mayor will publicize it too. This is what Hochul should be doing with Affirmation Tower.

Yes, especially since Citadel is in the financial service industry and the mayor want to tell the world that NYC remains the undisputed financial capital and financial companies continue to expand there. I've seen articles mentioning that Dallas is catching up to NYC in financial service jobs and I am sure the mayor is aware of those articles and the 'competition' from TX. For example, there was an article (I think from the WSJ) mentioning that even though JPMC is building the new HQ in NYC, the company has more employees in Texas and a huge number in Dallas and all of these other financial companies were adding new offices and thousands of employees there rather than NY state. And I recall a year or two ago, the NYSE was flirting with relocating the NJ back offices operations to Dallas because of some planned new trading tax. But of course, Dallas is not the financial capital of the world even as it gains a lot of financial service jobs. And NY continues to attract new financial service jobs even as hedge fund billionaires move down to Florida or businesses expand in TX because of lower taxes and cheaper costs.

[ChiND]

Dallas is not remotely anywhere near NY in finance. It gets back office jobs like Charlotte and Salt Lake do.

[chris08876]

Its a big deal. Considering the general slow down in the city RE wise, I think they are highlighting it as an air of optimism. Potentially as a PR moment to gather further opportunities. Not that the city is moving to a crawl construction and project wise but let's just say its not what it use to be. Hopefully that can change!

[NYguy]

^ There is a lot moving forward in development. It’s a years long process to get things moving and then under construction in the city. When that gets slowed, or even stopped as was the case with covid, it takes time to build back up to active levels. Still, compared to most places, the city can’t complain. Especially as jobs lost during covid have been regained.

Originally Posted by DCReid

Yes, especially since Citadel is in the financial service industry and the mayor want to tell the world that NYC remains the undisputed financial capital and financial companies continue to expand there. I've seen articles mentioning that Dallas is catching up to NYC in financial service jobs and I am sure the mayor is aware of those articles and the 'competition' from TX. For example, there was an article (I think from the WSJ) mentioning that even though JPMC is building the new HQ in NYC, the company has more employees in Texas and a huge number in Dallas and all of these other financial companies were adding new offices and thousands of employees there rather than NY state. And I recall a year or two ago, the NYSE was flirting with relocating the NJ back offices operations to Dallas because of some planned new trading tax. But of course, Dallas is not the financial capital of the world even as it gains a lot of financial service jobs. And NY continues to attract new financial service jobs even as hedge fund billionaires move down to Florida or businesses expand in TX because of lower taxes and cheaper costs.

That’s always the case. The city itself will always remain the center of finances, even if there are other employees elsewhere. Even Citadel, which moved it’s main office to Miami, recognizes that. Which is why they are building this big, beautiful tower. But I don’t want to get into who or what is going where, beyond the city.

Park Avenue itself has been in battle not just with Hudson Yards, but longtime rival 6th Avenue. They’ve all been doing well, with a little back and forth between Park and 6th. But Park Avenue remains a top concentration. When these large towers that are coming start piercing the skyline, that will become even more obvious.





New York City mayor’s office

[Crawford]

I can't wait to see the plans for the Roosevelt Hotel site. This corridor is going to be the most epic office corridor on earth.

[mrnyc]

the tower design is fine, if not spectactular. it is more modern and sleeker than the previous designs and it will complement chase well.

there look to be two outstanding features, first of all the curved glass. i am getting manhattan west vibes and that would be a very good thing as the glass there is top shelf.

second and best of all for most people is the major improvement and expansion of the base plaza. the base on the first version of this tower was crap and the hanging boxes iteration wasn’t much better. it looks clean and terrific at the streetlevel base and so its a win for pedestrians.

[NYguy]

One thing I overlooked in the mayor’s press release…

After filing an application with the New York City Department of City Planning, Vornado Realty Trust, Kenneth Griffin, and Rudin are advancing a new tower that will deliver 1.8 million square feet of commercial office space, a new public concourse, and more than $35.8 million for the city’s East Midtown Public Realm Improvement Fund.

The pre-certification process (the long process before we get to scoping) has begun. So, in a way, approvals have begun.

[NYguy]

Originally Posted by Crawford

I can't wait to see the plans for the Roosevelt Hotel site. This corridor is going to be the most epic office corridor on earth.

The block directly across from the Waldorf, containing two mid office buildings, should be redeveloped down the line.

https://www.skyscrapercenter.com/bui...k-avenue/15326

Originally Posted by mrnyc

the tower design is fine, if not spectactular. it is more modern and sleeker than the previous designs and it will complement chase well.

there look to be two outstanding features, first of all the curved glass. i am getting manhattan west vibes and that would be a very good thing as the glass there is top shelf.

second and best of all for most people is the major improvement and expansion of the base plaza. the base on the first version of this tower was crap and the hanging boxes iteration wasn’t much better. it looks clean and terrific at the streetlevel base and so its a win for pedestrians.

Also, you don’t usually see bay windows on office towers in Manhattan.

[ChiND]

Originally Posted by Crawford

I can't wait to see the plans for the Roosevelt Hotel site. This corridor is going to be the most epic office corridor on earth.

I agree. Also, hopefully, the Roosevelt’s office component may be small enough (e.g., 500k-700k sf) to build on spec., especially if a Middle Eastern sovereign wealth fund partners with the Pakistanis and whatever developer is chosen.

[O-tacular]

I like this version much more than the last boxes with terraces design. We'll see if it ends up going ahead in this form or changes again. The base is a bit fat for my liking but the colonnade looks good. Foster seems to be on a real kick lately with these buildings composed of slices / layers. It's like a half version of 270 Park Avenue.

[NYguy]

Originally Posted by O-tacular

I like this version much more than the last boxes with terraces design. We'll see if it ends up going ahead in this form or changes again. The base is a bit fat for my liking but the colonnade looks good. Foster seems to be on a real kick lately with these buildings composed of slices / layers. It's like a half version of 270 Park Avenue.

I’m sure this one will be refined in greater detail further down the line, but is pretty much the basic form. When you look at it, all 3 concepts are similar in concept.

[NYguy]

Design is pretty much in line with this earlier 270 Park graphic as far as setbacks go....

[DZH22]

I like that all the setbacks are on one side and it has that full vertical wall on the other. It doesn't look 1600' though in context with the rest of the towers.

[ChiND]

While every city in America can’t build their traditional ten-story office tower upon a fifteen-story, exposed concrete garage, the Financial Capital of the World continues to build stunning supertowers!

All hail Ken Griffen and Jamie D. Next up to the plate: Scott Rechler!

[NYguy]

Originally Posted by DZH22

I like that all the setbacks are on one side and it has that full vertical wall on the other. It doesn't look 1600' though in context with the rest of the towers.

Oh, I wouldn't judge height based on that rendering. We don't know how old that rendering is, or if it even reflects the final design. The original renderings weren't accurate either as far as that goes. We may be hearing more about this tower sooner, since they expect to begin the approvals process early next year.

I do wonder though if this tower will taper in a similar fashion to 270 Park Avenue. That would give it an even better profile viewed directly from the east or west.

[NYguy]

https://nypost.com/2024/04/21/real-e...-out-of-space/

A class above: NYC’s trophy offices are running out of space


By Lois Weiss
April 21, 2024

Demand for the best office buildings in New York has not only recovered — it’s causing a spillover effect.

Large tenants that have lease terminations over the next several years are racing to snap up space while it’s hot in trophy towers.

Meanwhile, yet-to-be constructed towers — like 175 Park Ave., 347 Madison Ave., 3 Hudson Blvd., 70 Hudson Yards and 2 World Trade Center — are tempting anchor tenants with $200-per-foot rents in hopes of rising from the ground.

”We will have a moment of scarcity in the high end,” said David Goldstein of Savills.

The availability rate for better buildings in Midtown is 8.5%, while four years ago it was 15%, according to Newmark. Overall, the Midtown availability is 16.6% but without sublets is 13% on a direct basis. The average trophy rent is $143 per foot with the rest of Midtown averaging $83 per foot.

“Occupiers are spending more to be in the best buildings with amenities and appearance,” said David Falk of Newmark.

That’s why there are no “great” options for big tenants in the prime portions of Midtown, explained Bill Elder of RXR — one of the developers of 175 Park which owns and leases buildings that include 5 Times Square and Worldwide Plaza.

Look at the effective rate of vacancy right now and look at the pipeline of new buildings,” Elder said. “On Park, Madison and Sixth avenues there is no space. The A- and B++ buildings might actually get a lift.”

To capture that demand, SL Green’s 245 Park Ave. is being transformed with a new lower façade and amenities like a rooftop park. It has 300,000 square feet available.

Another 850,000 square feet is on the market at Brookfield’s reimagined 660 Fifth Ave. But that could be absorbed by Citadel, for instance, which is on the prowl for 400,000 to 800,000 square feet for around the next 10 years, while one of its current office buildings at 350 Park Ave. is demolished, built anew and made ready to move back in.

The financial firm Jefferies, now located at 520 Madison Ave., is also seeking 800,000 square feet, brokers said.

When its new 2.5 million-square-foot 270 Park Ave. headquarters is completed, JPMorgan Chase will likely keep its tower at 383 Madison Ave., but brokers say it may also retain space at 390 Madison and 277 Park that it leased during construction. A JPMC spokesman said the new building is expected to open by the end of 2025.

“It has 2.5 million square feet of flexible and collaborative space that can easily adapt to the future of work,” spokesman Michael Fusco said.

”While the old real estate mantra was ‘Location, location, location,’ ” Peter Turchin of CBRE said, “It evolved into ‘New construction, new construction, new construction.’ Now it’s also ‘Location, renovation, amenities.’”

[NYguy]

https://nypost.com/2024/04/22/real-e...-back-to-work/

Billionaire’s new building to soar over Midtown for one very specific reason





By Mary K. Jacob
April 22, 2024

In a bid to inject new life into Midtown Manhattan, especially in the wake of COVID, billionaire hedge fund titan Ken Griffin is placing bets on a soaring 62-story skyscraper that’s set to redefine the city’s skyline.

The ambitious project aims to revitalize the neighborhood, which suffered from widespread vacancies during the pandemic-induced downturn.

Teaming up with real estate giants Vornado Realty Trust and Rudin, Griffin’s Citadel and Citadel Securities will anchor the development at 350 Park Ave. The highly designed project is aiming to lure workers back to the office in a step away from working from home.

Announced by the mayor’s office last Tuesday, the venture signals a significant step in the ongoing revitalization efforts with the pandemic in the rear-view mirror.

The skyscraper is slated for completion by 2032.

[BrickellBased]

”We will have a moment of scarcity in the high end,” said David Goldstein of Savills.

The availability rate for better buildings in Midtown is 8.5%, while four years ago it was 15%, according to Newmark. Overall, the Midtown availability is 16.6% but without sublets is 13% on a direct basis. The average trophy rent is $143 per foot with the rest of Midtown averaging $83 per foot.

Good news for skyscraper nerds that the high end is in high demand. Hopefully we start to see more high end office around the country.

In some strange twist of fate the pandemic could end up expediting innovation in the office market as it has to 'compete' with work from home.

The skyscraper is slated for completion by 2032.

2032! I'm gonna be an old man.

The commitment is maybe worth as much as the building in getting other money to move from the sidelines.

[rgarri4]

• Video Link

[NYguy]

^ Good look at the 3 designs.

Originally Posted by BrickellBased

Good news for skyscraper nerds that the high end is in high demand. Hopefully we start to see more high end office around the country.

The problem with New York is, even though there is a lot of office space, and a lot of office buildings, most of them - especially in Midtown East - are 80 years or older. New York hasn't really done a good job of renewing it's office supply, mainly due to zoning restrictions. Midtown East was zoned down, so most of the office buildings that could or would have been replaced would have had to be replaced with smaller buildings. Which was ridiculous. That all changed with the Midtown East rezoning. Meanwhile, the Hudson Yards was the city's effort to provide a space for the kinds of new office towers companies demand, it has proved more successful than really anyone thought.

Which brings us back to Midtown East. The largest, and really the only new significant office tower under construction is 270 Park Avenue, the headquarters of JPMC. It can't really be counted as an option, since it will entirely belong to JPMC.

Citadel, being the prime tenant at 350 Park, will get the best floors, and I'm sure some of the upper floors. The heavyweights like to be the anchor tenants in the new buildings. The smaller, upper floors of new buildings are some of the most expensive in the city. If you need a half million sf of space or more, you really want to be an anchor tenant in the early stages.

But when people wonder why new office towers are going up in the city, with a high vacancy rate, the issue is what's in demand. Not all office space is the same, and it's the newer office space that is in demand.