Despite nervous nellies fretting a while back that Manhattan would be awash in large chunks of empty office space, a sudden dearth of big blocks of available space has prompted developers to consider dusting off their plans for new, large office buildings.
Some brokers say that large block availabilities have been chipped away in central locations, leaving those needing 400,000 square feet to mull splitting their requirements within the same tower, taking some floors in one section of a building, and a group of floors in another portion.
“These days, you have to be very creative,” said Peter Turchin of CB Richard Ellis. “If I need a list of 400,000 [square foot] blocks, there aren’t many.”
According to current Cushman & Wakefield statistics, there were just 17 blocks of 250,000 square feet available within the last six months.
But Mitchell Konsker of Cushman & Wakefield still thinks there’s a long way to go before developers build new towers.
“In order to build you need $100 a [square] foot [in rent] and until we see a sharp increase in net effective rents, you won’t see any new construction,” he said. “We are bouncing along the bottom.”
Meanwhile, various industry sources highlighted some of the current brick-kicking taking place among major corporations.
Morgan Stanley is seeking 850,000 to 1 million square feet downtown through Barry Gosin at Newmark Knight Frank, while Condé Nast, as you may have read, is also in need of one million feet. Both are looking at all the future World Trade Center towers.
Others on the hunt include:
* Société Générale for 500,000 square feet, though the French bank may renew its current lease through Pat Murphy at CB Richard Ellis.
* French advertising giant Havas, which has tapped Gosin and colleague David Falk to help it search for 400,000 square feet.
* NYU’s Langone Medical Center, which is searching with Josh Kurlioff and Bruce Mosler at Cushman & Wakefield.
* Bank of New York, which has tapped Peter Riguardi at Jones Lang LaSalle in its search for 450,000 square feet.
* Neuberger Berman, which has hired NKF’s Neil Goldmacher for its search for 340,000 square feet.
* Columbia Presbyterian, which is getting help from Goldmacher and colleague Mark Weiss in its quest to secure between 300,000 and 400,000 square feet.
* Men’s retailer Paul Stuart, which is in the hunt for 150,000 square feet.
* Money manager Nataxis, which is nearing a deal to move into 173,000 square feet on the third through sixth floors of 1251 Avenue of the Americas thanks to Cushman & Wakefield’s John Cefaly.
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Someone has finally put a price on Sam Zell — at least on one of his infamous Christmas gifts.
The generous but eccentric developer began a tradition in 1976 of handing out music boxes as holiday gifts, and now one of them is being offered on Craigslist in San Francisco.
No. 388 of the 675 that were distributed in 2003 is being priced at $300, and features a globe suspended in a brass gyroscope.
The seller claims it moves around and plays a song with lyrics composed by Zell.
Neither the seller nor Zell’s spokesperson returned requests for comment.
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The Bowery Residents Committee is relocating its Lafayette Street headquarters and other residential rehabilitation facilities to the entire 104,500 square feet at 127 W. 25th St. in Chelsea.
Under a new, 33-year “triple net” deal, BRC is responsible for building expenses like property taxes and maintenance.
The owner, Dan Shavolian of Foremost Real Estate, has already redone the windows, lobby, roof and other items and is putting up the lion’s share of $16 million in further improvements that are being supplemented by public and private sources. He purchased the building in 2008 for $32 million.
“This is the largest non-profit deal in a long time,” said David Lebenstein of Cassidy Turley who represented the tenant along with colleague Robair Reichenstein. “They will create jobs and that is a positive thing for the economy.”
The team of Martin Meyer and son, Eric, of Colliers International, represented Shavolian, who is vacating the building for the new occupants.
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Fashion retailer Cache will be making a new appearance in Bloomie’s country with a lease at 1144 Third Ave. at the southwest corner of 67th Street.
The chic dress house will slip into a 2,200 square foot corner por tion of the former Searle space that has great front age on both sides.
The asking rent for the space was $225 a square foot and the store is ex pected to open later this fall.
Mort Schrader of PBS Real Estate, who also sits on the Cache board, along with colleague Dan Harroch represented the retailer.
Faith Hope Consolo, chairman of Prudential Douglas Elliman’s Retail Group, and colleague Joseph Aquino, represented the owner, which is a joint venture of NorthBrook Partners and BlackRock.
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Urban Outfitters has signed a long-term lease for a 12,385 square foot duplex space at 200 E. 86th St. in the base of The Brompton condo.
The space includes 3,760 square feet on the ground floor and 8,625 square feet on the lower level.
The new store will open this fall and is the retailer’s second Upper East Side store and seventh in Manhattan.
