Rents at most Navy Yard buildings are below $40 per square foot. The “vast majority” of the Yard’s total 5 million square feet are leased, according to Navy Yard chief development officer Johanna Greenbaum. The city-owned, 300-acre contemporary industrial park has also seen more than 81,000 square feet of renewals. The Brooklyn Navy Yard scored a salvo of new leases since March - a whopping 162,428 square feet. “We are patient.” Brooklyn Navy Yard finding tenants “We’re not interested in landing the first tenant who comes along, the bottom feeders,” he said. He said tenants will likely be large corporate users, including “experiential” venues, entertainment companies and an array of traditional retailers. Strauss declined to cite asking rents for the stores. CBRE’s Robert Alexander, Ryan Alexander, Michael Affronti and Taylor Callaghan will sift offers. RXR must compete for office tenants with newer properties - including in the Hudson Yard-area towers and at 425 Park Ave.īut 5 Times Square’s rents will run from $80-$100 per square foot on higher floors - a bargain compared with the cost at other locations. In addition to the new subway link, RXR is replacing obsolescent exterior signage with giant LED displays, redesigning the lobby, and creating a tenants’ amenity center to be managed by a big-name food-and-beverage operator. The landlord’s confidence in 5 Times Square is based on its central location, mass-transit proximity, and column-free floor plates of 31,000 square feet with floor-to-ceiling windows. RXR’s portfolio boasts 26 million square feet of metro-area offices, of which 19 million square feet are in the city. “We are fortunate to be an institutional owner that can take advantage of the lead time,” she said. RXR executive vice-president Whitney Arcaro concurred. Joshua Strauss, leader of a Newmark team on board to market 21,000 square feet of retail space, agreed, “We can take our time putting together our market approach in a very deliberate way.” “I think by mid-year 2021, a lot of people will be outsourcing solutions to their space needs.” Remember, there were 19 million square feet of requirements before the pandemic, and most of it is still out there. With the election over and the vaccines announced, people are starting to become re-engaged with the market. RXR managing director Bill Elder and his team of brokers politely chuckled when we asked our dreaded, pandemic-times question:Īre you guys crazy to think it can be done?Įlder assured us, “We’re not out of our minds. RXR, which owns the tower in a joint venture with investor David Werner, is spending $50 million more on upgrades - notably, an elevator connection for the first time between the lobby and the huge subway station below. RXR has its work cut out now that leasing has slowed to a crawl, Times Square remains mostly desolate, and companies are putting oodles of space up for sublease. It opened at the corner of Seventh Avenue and West 42nd Street in 2002 as one of the quartet of commercial giants that defined the “new Times Square.” Ernst & Young was former owner Boston Properties’ anchor tenant.īut in 2022, EY, as it’s now known, will move to Manhattan West. It’s battle stations at the Crossroads of the World, where Scott Rechler’s RXR Realty is ramping up to re-fill its 39-story, 1.1 million square-foot 5 Times Square, which will soon be empty.
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