THE city’s commercial real estate brokers have reasons to be cheerful.
Vacancies are low, rents remain elevated and there are many large tenants in the market.
Among them are law firms, financial firms and media companies.
Law firm Orrick Herrington & Sutcliffe, now situated at Kushner Companies’ 666 Fifth Ave., is feeling out its options for over 300,000 square feet through Barry Gosin, Moshe Sukenik and Aaron Katz at Newmark Knight Frank. Its lease expires in 2010.
The attorneys have examined downtown, cross examined L&L Holdings’ former Toy Building at 200 Fifth Ave. and deposed Midtown’s new tower going up at 11 Times Square.
Sukenik and Gosin, NKF’s chairman, are also leading the hunt for 500,000 feet for Paul Weiss Rifkind Wharton & Garrison. Its lease for 439,459 feet at 1285 Ave. of the Americas has a few years to go.
The bigger law firms have continued growing so those that move to quality buildings will generally sign at least 15-year leases with two five-year options.
As previously reported, law firm Proskauer Rose, being handled through CB Richard Ellis, is finalizing its 400,000- to 600,000-foot deal with Boston Properties at its new, 250 West 55th Street tower.
The firm may need other expansion or back-office space off-site in the future as law firm Gibson Dunn has already signed a hard pact in the same building for 200,000 feet, and likely has some growth options of its own in the same 850,000-foot building.
Big Bird is also seeking a new nest. The Sesame Workshop, now located at 1900 Broadway, aka One Lincoln Plaza, has hired Gosin, Sukenik and Robin Fisher of NKF to explore options for 150,000 feet.
Bloomberg is looking for expansion space with Howard Fiddle at CB Richard Ellis. Citibank also has 200,000 square feet at the Bloomberg Building at 731 Lexington Ave., and may be looking to sublease it out.
Divisions of French financial firm Natixis, which has subleases at 1251 Avenue of the Americas, 1345 Avenue of the Americas and other locations, is searching for over 200,000 feet with Cushman & Wakefield.
Media company Hachette Filipacchi is examining its options through Fred Trump of NKF. CoStar Group has the firm listed at 1633 Broadway in Times Square in 277,000 feet that expires in 2011.
As we advised last week, Deutsche Bank is on the prowl for 500,000 feet through Peter Riguardi and Ken Siegel at Jones Lang LaSalle.
Riguardi is also heading Merrill Lynch’s negotiations for up to 2.6 million feet that is currently concentrating on a short-term renewal with Brookfield Properties at the World Financial Center while Merrill’s leadership decides what to do about a long-term solution.
Perhaps it will jump in and take over JPMorgan Chase’s obligation to the Port Authority for the so-called Beer Belly Building at Tower 5 at the World Trade Center site.
JPMorgan needs 1 million feet and is now getting 383 Madison Ave. in the Bear Stearns buyout.
While they told the Post’s Tom Topousis that they will uphold their obligation to the PA, it doesn’t mean they aren’t seeking other solutions.
“The diffi culty is, how serious are peo ple looking, and are they looking to move or renew because it’s the path to least resistance?” said Lisa Kiell of Jones Lang LaSalle.
One new, off- the-radar option is the base of 1440 Broadway at West 40th Street, which is now occupied by Liz Claiborne.
The retailer intends to sublease out four of its floors in the Monday Properties’ building – which total 150,000 feet – through Steve Siegel and Amanda Bokman at CBRE – in order to get in on the activity taking place on 40th Street, which is close to Times Square.
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Hot Brazilian jewelry designer Jack Vartanian is opening his own store in the sizzling new Mark Hotel condo at 996 Madison Ave. Vartanian was brought to the city by Alex Cesar of Eychner Associates.
The 10-year lease had an asking rent of $1,000 a foot and last we heard was sent to Izak Senbahar’s Alexico Management for signature.
Beth Rosen and Sal Ferrigno of Robert K. Futterman & Associates represented Alexico.
