JLL Brokers 110 KSF Deal of Office Space on Manhattan’s Third Avenue

July 27, 2011
By Nicholas Ziegler, News Editor

The busy transactions in the Manhattan commercial market continue as we enter the third quarter of the year. Jones Lang LaSalle announced on Wednesday that it completed a new lease for building owner Eastgate Realty with Cerberus Capital Management LP at 875 Third Avenue in Midtown. The private-investment firm signed a 10-year lease for 110,000 square feet at the Class A, 720,000-square-foot office building.

As JLL noted in second-quarter 2011 research report, while most leading indicators point to a significant market recovery in the Midtown area, vacancy still remains high and overall asking rents are largely flat. The report goes on to mention that “asking rents will likely move higher through the remaining of 2011 as landlords seem eager to test new demand.”

While it’s too early to say whether or not that prediction will come true, the trend is looking upward. With the signing, 875 Third Avenue is now more than 98 percent leased. And the 110,000 square feet for Cerebus represents an increase of 20 percent from its previous office space. “This building is one of the premier office towers on Third Avenue and offers state-of-the-art amenities,” said Paul Glickman, vice chairman of Jones Lang LaSalle.