BLACKSTONE, the world's largest alternative asset management company, is all -in to the conversion of Manhattan after the community pandemic has inconvenienced the commercial real estate market.
The company's efforts to buy 1345 SIXTH AVE. from Fisher Brothers were widely welcomed this week as a stroke of religion in the Manhattan office market, but it was not the first megadel by a financial giant.
Last summer, Steven A. Schwarzmann -led Blackstone has signed a 345 Park Avenue in Rudin in the largest Manhattan office in 2024 and decided to exceed 1 million square feet from 720,000 square feet. 。
Both movements reflect the changes in the mind due to blackstones, stating that last year is focusing on office property than technology and industrial investment.
Blackstone pivot shows surprising, some analysts, and unexpected overall resurrection in the Manhattan office market.
In the case of the undecided 1345 6th purchase First reported by BloombergAfter passing, the total sales of $ 1.6 billion in the fourth quarter of 2024, increased 98 % from the third quarter and increased by 110 % from the fourth quarter of 2023. young.
Sales were still lower than the total of 2019, but the rise in the rise is clear, and it is partially promoted due to an increase in interest rates and a decrease in building value due to overhanging debt.
“There are a lot of bargains hunters there, but the bargains do not last, so they should move fast,” said an investment sales broker who did not want to name it.
The financial conditions for the future 1345 contract have not been revealed.
According to JLL's report, things are even brighter on the leasing front where the landlord and tenant are “the mirror behind the family”.
Tracking Service VTS reported this week that the demand for Big Apple's office space has increased for the first time in November of 2019 before 2019. The survey that analyzes corporate space requirements is considered an authoritative preview of the lease market.
CBRE Global Brokerage Stephen B. Sigel said that “VTS is correct” about “VTS is correct”. The landlord and the broker are also observing the number of tire kicks by hunting tenants to increase the requests of Towarts.
Regarding the 1345 SIXTH AVENUE, which he is not involved, Siegel said, “When Paul Wises enter, it is a wonderful asset with a stable occupancy.”
The law firm moved to 765,000 square feet in 2027. This is the biggest lease signed in 2023. Recently, the tower has been improved by $ 120 million.
The building has been leased more than 92 % to tenants such as Intercontinental Exchange, Canyon Partners, and Fortless Investment Group.
As reported in the post, the vacancy of the A-Plus class building fell to less than 10 %. The overall availability was stable from 16 % to 17 %. And the demand for prime space was so close, so there was no room for the tenant to move or expand.
Furthermore, as aggregated by JLL, the recorded 28 new leasing in 2024 is signed at a rent of more than $ 200 per square feet, and the record 212 leases are painted at at least $ 100 per square feet. I did it.
The latter category included a Blackstone wreath in 345 Park Ave.
The Manhattan Lease Volume was 35.9 million square feet in 2024. Avison Young reports on Thursday that it was only 10 % than 2019, and whipped 29 % and 33 % less US cities in other large US cities such as Los Angeles and CHICAGO. 。
