The city's largest commercial landlord received a major boost from Bloomberg LP's sustained and growing stake in Midtown's Eastside.
The media giant's 924,876-square-foot renovation and expansion at 919 Third Ave., which we first reported, was a welcome surprise for landlord SL Green.
CEO Mark Holliday revealed on the company's third-quarter investor call that Bloomberg's commitment was “not really in scope.” [our] Expectations at the beginning of this year. So it was a very pleasant surprise. ”
Bloomberg has also been a boon for Vornado Realty Trust. The company has extended its 900,000-square-foot lease at 731 Lexington Ave. through 2040, but Vornado CEO Steve Ross has announced capital upgrades and $300 million worth of investment, according to a report from Crain's. The company reportedly promised a combination of free rent and assisted with the contract.
January will be another happy month for Vornado. New York University plans to master lease all 1.1 million square feet of office space at 770 Broadway, home to the new Wegmans, Ross said on an investor call.
Not all owners and buildings were so lucky. Still, despite an undeniably difficult market, Manhattan's office leasing industry is showing considerable momentum, and that momentum could accelerate following recent interest rate cuts.
The overall vacancy rate was 17.2% in October, the lowest level since March 2021, according to the latest data from CBRE. Leasing activity of 1.73 million square feet was 57% above the five-year monthly average.
