Bite-sized office projects are booming. They can rise on small plots, don’t need big loans and boast curb appeal for tenants that want high-tech, classy and glassy homes.
NYC’s new crop of boutique buildings are typically no more than 150,000 square feet of new construction or gut-renovated space. Major architecture firms are tapped to design, with interiors featuring large windows and outdoor amenities.
“The city has so many great areas,” says Peter Riguardi, president of JLL. “Some of these boutique buildings in these great areas are very attractive for tenants.”
Take the half-dozen new buildings in the Meatpacking District near the High Line, a handful in Tribeca, another group by Houston and Broadway, more in Midtown and others scattered across Brooklyn.
These projects appeal not only to small companies, but to subdivisions of large corporations. “The end user wants something small,” says Ron Lo Russo, vice president at Cushman & Wakefield.
“Instead of a tech division being part of a bigger office, it wants to be in a boutique,” Lo Russo adds.
In fact, units of conglomerates such as Samsung and Aetna are taking over such projects.
The Meatpacking buildings include the multi-tenanted 860 Washington St. and 450 W. 14th St.; Samsung at 837 Washington St., 61 Ninth Ave., where Aetna has leased; LiveNation at 430 W. 15th St. and the upcoming 11-story 40 10th Ave. Known as the Solar Carve Tower for its Studio Gang architecture, it’s being developed by Bobby Cayre’s Aurora Capital and William Gottlieb Real Estate. Hyundai nabbed a 40,000-foot retail space for its luxury Genesis brand there — right next door to Tesla’s outpost at 860 Washington St.
Not far away, a 174,200-square-foot project by the Albanese Organization and Vornado Realty Trust at 512 W. 22nd St. has an industrial feel. Designed by CookFox, its 11 stories are wrapped by a chestnut brown facade and every floor has terraces.
Tenants will pay triple digits for the privilege of these amenity-driven offices. “The companies are all competing with each other for top talent, and boutique new construction provides a way to create something special — whether with branding, outdoor space, ceiling height or new infrastructure,” says Benjamin Bass, senior vice president of JLL. “That’s what is driving a lot of these projects, but obviously, it comes at a high price point.”
Where Tribeca, Hudson Square and Soho meet, the Vanbarton Group will redevelop the former Tribeca Film Festival building at 13-17 Laight St. Designed by Gensler, it will contain 100,000 square feet overlooking a park and Canal Street. Vanbarton’s SVP Jeremy Sedrish says, “We are still finalizing our plans but expect to deliver a true Class A office asset.”
Ken Aschendorf of APF Properties bought 163 Varick St., aka 60 Charlton St., where HOK is designing a 100,000-square-foot Class A boutique office building with some terraces.
Capital and William Gottlieb Real Estate, is by acclaimed firm Studio Gang.Studio Gang
Three others are going up around Houston and Broadway: 799 Broadway, developed by Normandy Partners; 606 Broadway, aka 19 E. Houston St., developed by Vornado and Madison Capital; and 300 Lafayette St.
The latter is rising on the site of a former gas station as Related signed a long-term lease with Larga Vista through 2113. When completed this year, the seven-story project at Houston Street will be purchased by Nightingale Properties.
These join six-story 610 Broadway, developed by Macklowe over a decade ago and leased to financial service companies and Adidas, which has both a store and offices there.
In Midtown, Savanna and Atom Assets are constructing the 26-story 106 W. 56th St. between Sixth and Seventh avenues. The 90,000-square-foot property will have terraces and park views.
Over in Williamsburg, Flank is developing two unusual structures at 320 and 360 Wythe Ave. — the first NYC offices built with timber in about a century.
On the Dumbo waterfront, 10 Jay St. is being redeveloped by Glacier Global and Triangle Assets. Its entire front was replaced with a dramatic glass facade by ODA. Leasing is well underway by the JLL team of Bass, Mitch Konsker, Howard Hersch and Brett Harvey, along with Triangle Assets. Asking rents are $75 to $85 per foot.
facade overlooking the East River and Manhattan.Visualhouse
Boutique buildings are “an interesting trend, and reflective of the fact that people want new, interesting and innovative space,” says Dan Kaplan of FXFowle, a major architecture firm designing two such projects in the city.
Large towers need a certain amount of pre-leasing, Kaplan explains. Meanwhile, smaller tenants can lease an entire boutique building. They can have a separate entrance, unique branding or an exclusive roof deck.
Just don’t equate boutique with cheap. Developers are paying top dollar for sites and using quality materials to make them exceptional, technologically advanced and attractive to today’s employers and, most of all, coveted employees.
