Landlords along Midtown’s 6th Street have poured billions into upgrades over the last three years, aiming to attract tenants looking for modern facilities and amenities.
These renovations have helped achieve over 3.6 million square feet in leasing within the stretch between West 41st Street and Central Park West in the past year, as reported by CBRE.
A notable property benefitting from this trend is RXR’s 1211 Sixth Ave., located between West 47th and 48th Streets, with major tenants such as News Corp’s Dow Jones, the New York Post, and also Fox News.
The media organization occupies 1.2 million square feet within the 2 million-square-foot tower, which additionally hosts Disney and Wells Fargo.
Interestingly, the strength of Sixth Street seems tied to that of Park Avenue. CBRE has noted that multiple towers or parts of them changed hands quite well in the past year.
In terms of availability, the space in the 44.2 million square feet Sixth Avenue/Rockefeller Center submarket saw a drop of nearly 10% in the third quarter of 2024, contrasting with a 15% decrease in the same quarter of the previous year.
Looking ahead, law firm Ropes & Gray is planning to occupy RXR’s 1285 Sixth, situated a few blocks north of 1211 Sixth, which will provide a significant 700,000-square-foot space in 2028.
This has prompted developers led by Scott Rechler to invest $367 million into enhancing the 1970s-era building to compete better with its surroundings. RXR recently acquired a 49% stake in this property from Ivanhoe Cambridge and managed to secure a $1.45 billion recapitalization in October.
The upcoming renovations will introduce a new glass retail arcade on the 47th and 48th Street sides, which is making its first appearance here.
Among the amenities currently being built are a boardroom, flexible suites, lounges for business and wellness, a golf simulator, and a café in the lobby.
The tenant lounge aims to have a raised coffee bar along with a seating area and quick food options.
A wellness suite will include spa-like features such as an infrared sauna, red light therapy, a meditation room, and various recovery stations.
Plans also include a boardroom for meetings and private dining, along with a cozy lounge equipped with a golf simulator and a “speakeasy” for intimate gatherings and special events.
As for completion, that date hasn’t been specified yet.
In addition, RXR has revealed plans for 75 Rockefeller Plaza, alongside Farallon Capital Management. This initiative represents their latest $5 billion undertaking, contributing to RXR’s total of 9 million square feet in their Manhattan portfolio, which has also reached $5 billion over the past two years.
