{"id":1004698992,"date":"2024-02-01T06:17:43","date_gmt":"2024-02-01T14:17:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004698992"},"modified":"2024-07-25T03:53:26","modified_gmt":"2024-07-25T11:53:26","slug":"manhattan-construction-starts-plummeted-in-2023","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/manhattan-construction-starts-plummeted-in-2023\/","title":{"rendered":"Developers Pull Back on Manhattan Office Starts"},"content":{"rendered":"<div class=\"wp-block-image is-style-default\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2431abcada1&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-large is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"922\" height=\"692\" data-attachment-id=\"1004700400\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/brookfield-opens-two-manhattan-west\/two-manhattan-west-exterior-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg\" data-orig-size=\"922,692\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Two Manhattan West exterior\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Two Manhattan West was completed in July 2023. Image by Dave Burk, courtesy of Skidmore, Owings &amp;amp; Merrill &lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg?w=922\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg?w=922\" alt=\"Rendering of Two Manhattan West\" class=\"wp-image-1004700400\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg 922w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/Two-Manhattan-West-exterior-1-e1706707276670.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 922px) 100vw, 922px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Two Manhattan West came online in July 2023. <em>Image by Dave Burk, courtesy of Skidmore, Owings &amp; Merrill<\/em> <\/figcaption><\/figure><\/div>\n\n\n<p>At the end of 2023, the nation&#8217;s biggest office market was still struggling with supply. Nevertheless, Manhattan maintained its position as the priciest market, leading the U.S. in terms of average sale price per square foot. The borough&#8217;s overall deal volume last year was the highest in the country.<\/p>\n\n\n\n<p>As of December, 6.9 million square feet of office space was underway in Manhattan across 13 properties, accounting for 1.4 percent of existing stock\u2014lower than the national average of 1.7 percent. Among gateway cities, Chicago recorded the lowest figure at 0.5 percent, while Seattle led with 5.5 percent.<\/p>\n\n\n\n<p>Manhattan\u2019s under-construction stock in December exceeded that of Washington, D.C. (4.1 million square feet) and San Diego (5.5 million square feet), but was lower than in San Francisco (7.3 million square feet), the Bay Area (8 million square feet) and Seattle (9.8 million square feet). Across peer markets, Boston had the most office space underway, totaling a whopping 15.7 million square feet.<\/p>\n\n\n\n<p>Significant office developments underway include <strong>JPMorgan Chase<\/strong>\u2019s 270 Park Ave., a 2.5 million-square-foot, Class A+ mid-rise in the Plaza District. The company\u2019s <a href=\"https:\/\/www.commercialsearch.com\/news\/jpmorgans-2-5-msf-manhattan-hq-project-tops-out\/\">new global headquarters topped out<\/a> in November 2023, with completion scheduled for late 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-construction-starts-fell-sharply\">Construction starts fell sharply<\/h2>\n\n\n\n<p>In terms of deliveries, the borough registered 6.3 million square feet of completed office space across eight properties in 2023. In July, <strong>Brookfield Properties<\/strong> wrapped up <a href=\"https:\/\/www.commercialsearch.com\/news\/brookfield-opens-two-manhattan-west\/\">Two Manhattan West<\/a>, a 2.1 million-square-foot high-rise. The building is the second of four office towers that are part of the developers\u2019 Manhattan West project. In late 2023, Brookfield landed Spanish bank <a href=\"https:\/\/www.commercialsearch.com\/news\/2-msf-nyc-tower-tops-out\/\">BBVA as a tenant<\/a> for 74,000 square feet.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2431abcb8ab&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignleft size-medium is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004698998\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/manhattan-construction-starts-plummeted-in-2023\/penn-2-vornado-realty\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg\" data-orig-size=\"993,745\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Simona Tudose&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1706012677&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"PENN 2 Vornado Realty\" data-image-description=\"&lt;p&gt;PENN 2 went through a complete redevelopment last year. Image courtesy of Vornado Realty Trust&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;PENN 2 went through a complete redevelopment last year. Image courtesy of Vornado Realty Trust&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg?w=993\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" height=\"225\" width=\"300\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg?w=300\" alt=\"PENN 2 went through a complete redevelopment last year. Image courtesy of Vornado Realty Trust\" class=\"wp-image-1004698998\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg 993w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/PENN-2-Vornado-Realty-e1706005571151.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Vornado Realty Trust&#8217;s PENN 2 went through a $750 million complete redevelopment last year.<em> Image courtesy of Vornado Realty Trust<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Another important delivery was <strong>Vornado Realty Trust<\/strong>\u2019s completion of PENN 2, a 1.8 million-square-foot building in Midtown. The property is part of the PENN DISTRICT, a 10 million-square-foot master-planned community and went through a complete renovation totaling $750 million that was finished in late 2023. Recently, <strong>Cushman &amp; Wakefield<\/strong> was appointed as <a href=\"https:\/\/www.commercialsearch.com\/news\/vornado-taps-cushman-wakefield-to-lease-manhattan-tower\/\">exclusive leasing agent<\/a> of the upgraded building.<\/p>\n\n\n\n<p>Construction starts in 2023 totaled 400,000 square feet across two properties, representing a significant drop compared to 2022&#8217;s 1.8 million square feet.&nbsp;<\/p>\n\n\n\n<p><strong>Taconic Partners<\/strong>\u2019 life sciences subsidiary <strong>Elevate Research Properties<\/strong>, along with <strong>Nuveen Real Estate <\/strong>and <strong>Flatiron Equities<\/strong>, is developing the 200,000-square-foot Iron Horse Labs in the Plaza District, according to <a href=\"https:\/\/newyorkyimby.com\/2023\/03\/renderings-reveal-200000-square-foot-research-lab-at-309-east-94th-street-on-manhattans-upper-east-side.html\" target=\"_blank\" rel=\"noreferrer noopener\"><em>New York YIMBY<\/em><\/a>. The project consists of the renovation and expansion of an existing 69,000-square-foot structure and its adjacent garage property, to be transformed into a <strong>Perkins &amp; Will<\/strong>-designed research laboratory. <strong>Barings<\/strong> provided a $78.6 million construction loan, according to CommercialEdge.&nbsp;Iron Horse Labs broke ground in October 2023 and completion is scheduled for 2025.<\/p>\n\n\n\n<p><strong>Rolex<\/strong>&#8216;s new 28-story headquarters at 665 Fifth Ave. will encompass roughly 200,000 square feet of office and retail space when complete. Foundation work commenced in December, with <strong>Pavarini McGovern<\/strong> as general contractor, <strong>David Chipperfield Architects<\/strong> as designer in charge and <strong>Adamson Associates<\/strong> as executive architect. Designed to achieve LEED Platinum certification, the tower is scheduled for delivery in 2025.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sales-volume-picked-up-prices-high\">Sales volume picked up, prices high<\/h2>\n\n\n\n<p>Last year, the investment volume in Manhattan totaled $2.7 billion, with 3.5 million square feet of space changing hands. By comparison, deals totaled $6.0 billion in 2022. At the end of the first quarter, the volume reached $682 million, while during the second and third quarters numbers dropped. Nevertheless, there were $1 billion in office investments recorded in the fourth quarter, pushing Manhattan to the nation&#8217;s forefront in terms of 2023&#8217;s total sales volume. <\/p>\n\n\n\n<p>The metro topped Los Angeles ($2.4 billion), Washington D.C. ($2.1 billion), Boston ($1.6 billion) and the Bay Area ($1.3 billion). Across gateway markets, the lowest sales volume was recorded in Baltimore, where 21 properties changed hands for $191 million.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2431abcc400&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-medium is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004699002\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/manhattan-construction-starts-plummeted-in-2023\/724-fifth-avenue-prada-commercialedge-img-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/724-fifth-avenue-prada-commercialedge-img-2-e1706006001171.jpg\" data-orig-size=\"640,480\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"724 fifth avenue prada commercialedge img 2\" data-image-description=\"&lt;p&gt;724 5th AAvenue&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;724 5th Avenue. Image courtesy of CommercialEdge&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/724-fifth-avenue-prada-commercialedge-img-2-e1706006001171.jpg?w=640\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" height=\"225\" width=\"300\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/724-fifth-avenue-prada-commercialedge-img-2-e1706006001171.jpg?w=300\" alt=\"724 5th AAvenue\" class=\"wp-image-1004699002\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/724-fifth-avenue-prada-commercialedge-img-2-e1706006001171.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/724-fifth-avenue-prada-commercialedge-img-2-e1706006001171.jpg?resize=300,225 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Prada&#8217;s $835 million acquisition included 724 Fifth Ave., where the Italian fashion brand had its flagship store since 1997.<em> Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>In 2023, the average price of office properties in Manhattan was $833.93 per square foot, the metro maintaining its position as the most expensive U.S. market. The national figure clocked in at $194.78 per square foot.<\/p>\n\n\n\n<p>One of last year&#8217;s notable office deals in Manhattan was <strong>Prada<\/strong>\u2019s $835 million portfolio acquisition that closed in December. The sale included 724 Fifth Ave., a 65,010-square-foot, 12-story Class A office building where Prada has occupied five floors since 1997, as well as 720 Fifth Ave., a 113,292-square-foot asset, where the new owner is planning its expansion.<\/p>\n\n\n\n<p>Another <a href=\"https:\/\/www.commercialsearch.com\/news\/top-5-northeast-markets-for-office-transactions\/\">important transaction<\/a> was <strong>Hyundai<\/strong>\u2019s $273.5 million acquisition of Fifteen Laight, a 110,945-square-foot mid-rise in Tribeca. The Class A property was completed in 2021 and will serve as Hyundai\u2019s new office and showroom in New York. The deal closed in February 2023, with <strong>Vanbarton<\/strong> <strong>Group<\/strong> as seller.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-largest-office-lease-of-2023-closed-in-manhattan\">Largest office lease of 2023 closed in Manhattan<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2431abccdd7&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignleft size-medium is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004699005\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/manhattan-construction-starts-plummeted-in-2023\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4.jpg\" data-orig-size=\"640,800\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"1345 avenue of the americas fisher bros k commercialedge img 4\" data-image-description=\"&lt;p&gt;1345 Avenue of the Americas&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;1345 Avenue of the Americas. Image courtesy of CommercialEdge&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4.jpg?w=640\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" height=\"300\" width=\"240\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4.jpg?w=240\" alt=\"1345 Avenue of the Americas\" class=\"wp-image-1004699005\" style=\"width:300px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1345-avenue-of-the-americas-fisher-bros-k-commercialedge-img-4.jpg?resize=240,300 240w\" sizes=\"auto, (max-width: 240px) 100vw, 240px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">A law firm signed a 765,000-square-foot lease at 1345 Avenue of the Americas<em>. Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>As of December, the metro maintained its position as the most expensive market for office leasing, with an average of $70.00 per square foot, while marking an 8.0 percent decrease year-over-year. Other gateway cities with high listing rates were San Francisco ($61.91), the Bay Area ($54.23) and Los Angeles ($41.67).<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.commercialsearch.com\/news\/fisher-brothers-jv-closes-largest-office-lease-of-2023\/\">largest office lease of 2023<\/a> was law firm <strong>Paul<\/strong>, <strong>Weiss<\/strong>, <strong>Rifkind<\/strong>, <strong>Wharton<\/strong> <strong>&amp;<\/strong> <strong>Garrison<\/strong> <strong>LLP<\/strong>\u2019s 20-year, 765,000-square-foot commitment at 1345 Avenue of the Americas. The approximately 2 million-square-foot tower is owned by <strong>Fisher Brothers<\/strong> and institutional investors advised by <strong>J.P. Morgan Global Alternatives<\/strong>. The 50-story property underwent multiple cosmetic renovations throughout the years, the latest one being a $120 million capital improvement program implemented in 2021.<\/p>\n\n\n\n<p><strong>Tishman<\/strong> <strong>Speyer<\/strong> and <strong>Irvine<\/strong> <strong>Co<\/strong>. signed an <a href=\"https:\/\/www.commercialsearch.com\/news\/metlife-extends-400-ksf-lease-at-manhattan-skyscraper\/\">11-year extension<\/a> with <strong>MetLife<\/strong> at 200 Park Ave., a 3.1 million-square-foot skyscraper. The insurance company recommitted to the 400,000 square feet it has been leasing and will maintain its headquarters at the 58-story office building through 2038.<\/p>\n\n\n\n<p>Another significant deal was <strong>PJT<\/strong> <strong>Partners<\/strong>\u2019 <a href=\"https:\/\/www.commercialsearch.com\/news\/sl-green-vornado-ink-lease-expansion-in-midtown-manhattan\/\">renewal and expansion<\/a>: the investment bank signed a 15-year, 270,000-square-foot commitment at 280 Park Ave., a 43-story tower in Midtown. <strong>SL Green Realty Corp.<\/strong> and <strong>Vornado Realty Trust<\/strong> own the property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-hotspot-for-coworking\">A hotspot for coworking<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2431abcd911&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-medium is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004699008\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/manhattan-construction-starts-plummeted-in-2023\/280-park-avenue-sl-green-vornado-jv-commercialedge-img-5\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/280-Park-Avenue-sl-green-vornado-jv-commercialedge-img-5-e1706006601413.jpg\" data-orig-size=\"640,480\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"280 Park Avenue sl green vornado jv commercialedge img 5\" data-image-description=\"&lt;p&gt;280 Park Ave.&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;280 Park Ave. Image courtesy of CommercialEdge&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/280-Park-Avenue-sl-green-vornado-jv-commercialedge-img-5-e1706006601413.jpg?w=640\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" height=\"225\" width=\"300\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/280-Park-Avenue-sl-green-vornado-jv-commercialedge-img-5-e1706006601413.jpg?w=300\" alt=\"280 Park Ave. Photo used in Manhattan Market Update\" class=\"wp-image-1004699008\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/280-Park-Avenue-sl-green-vornado-jv-commercialedge-img-5-e1706006601413.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/280-Park-Avenue-sl-green-vornado-jv-commercialedge-img-5-e1706006601413.jpg?resize=300,225 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">PJT Partners signed a 270,000-square-foot renewal and expansion at 280 Park Ave.<em> Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>As of December, Manhattan had the biggest flex office stock in the country at 9.5 million square feet, followed by Los Angeles (4.5 million square feet), Washington, D.C. (3.3 million square feet), Chicago (3.1 million square feet) and Boston (2.7 million square feet).<\/p>\n\n\n\n<p>The metro\u2019s share of coworking space as percentage of total leasable office space reached 2.5 percent, surpassing Los Angeles (2.2 percent), Chicago (1.9 percent) and the national figure of 1.7 percent. Among gateway markets, Miami led with 3.5 percent.<\/p>\n\n\n\n<p>In 2023, <strong>WeWork<\/strong> had the largest coworking footprint in Manhattan, with its locations totaling 5 million square feet. The company was followed by <strong>Industrious<\/strong> (807,368 square feet) <strong>Regus<\/strong> (772,479 square feet), <strong>Convene<\/strong> (550,612 square feet) and <strong>Spaces<\/strong> (432,839 square feet).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s how the country&#8217;s biggest market fared last year, according to CommercialEdge data.<\/p>\n","protected":false},"author":2991,"featured_media":1004700400,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,22251,21783,52420,1600,21742,10,21747],"tags":[51047,50674],"class_list":["post-1004698992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-in-focus","category-investment","category-market-updates","category-new-york","category-latest","category-northeast","category-office","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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