Downtown could get the office leasing breakthrough it's been waiting for by the end of the year.
Global trading company Jane Street is set to grow at Brookfield Place, it has been revealed. The electronically driven market mover, which has about 500,000 square feet at 250 Vesey Street, is in talks with landlord Brookfield for more space at 300 Vesey Street next door.
The Jane Street expansion will be welcome news for an area that has yet to catch up with the recovery of Midtown and Midtown South. However, while market officials confirmed that negotiations were underway, they declined to say how much more space the company would need.
The Jane Street mine at 250 Vesey is the company's largest, according to its website. We also have offices in London, Singapore, Hong Kong, Chicago and other major cities.
Meanwhile, much of the 500 million-square-foot Manhattan market is showing some recovery after three years of mostly stagnation. The market has been largely absent since the pandemic began in early 2020, but it appears to be finally regaining its footing. Corporate expansion in the third quarter saw many properties perform well, particularly across the “trophy” and Class A categories.
There may be more good news for distressed landlords after the Federal Reserve unexpectedly cut the federal funds rate by a sharp 0.5 percentage point early last month.
CBRE reported strong third-quarter deal closings except downtown. Total leasable area in Manhattan was 5.47 million square feet, 8% higher than the quarterly average over the past five years. Year-to-date leased area totaled 16.57 million square feet, an increase of 32% from 2023.
Midtown South's 1.32 million square feet of leased space was 29% above the district's five-year quarterly average, and Midtown's 4.7 million square feet was 5% above the five-year quarterly average, according to CBRE.
Avison Young's research lists Blackstone's more than 1 million square foot property at 345 Park Avenue as the biggest deal of the period. Other large properties include Area Management's 307,000 square feet at 245 Park Avenue and Elliott Management's 149,000 square feet at 280 Park Avenue.
TD Bank expands to another floor at 125 Park
TD Bank, one of SL Green's favorite tenants, has added another floor at 125 Park Avenue. The 26,255-square-foot transaction increases the bank's footprint at the 42nd Street landmark to 130,057 square feet and eases the tower's construction by 100 percent.
Stephen Durrells, leasing director at SL Green, said TD Bank is “one of the fastest growing tenants in SL Green's portfolio”.
TD Bank's office and retail lease at SL Green's One Vanderbilt contributed to the skyscraper's construction.
The tenant was selected by CBRE's Robert Alexander, Ryan Alexander, Matthew Saker and Nicole Marshall on behalf of 125 Park. The landlord was represented by Brian Waterman, David Falk, Pete Simkin and Daniel Levin of Newmark.
