NEW YORK, March 13, 2018 /PRNewswire/ -- Midtown
Manhattan remained the most active submarket for the city's largest
office leases in 2017, according to the second annual Avenue
Report, produced by the Avenue of the Americas Association and
member company Rockefeller Group, based on an analysis of office
leasing data compiled by CoStar Inc.
In particular, the West Side of Manhattan, led by Sixth Avenue, saw the
majority of office leasing last year, or 29 of the 50 largest
leases. Sixth Avenue ranked first among all locations in
Manhattan for the second
consecutive year, accounting for 10 of the 50 largest leases and a
total of 3.27 million square feet, up nearly 42 percent from 2.31
million square feet in 2016.
Other strong locations on the West Side included Tenth Avenue,
home to several new office developments in the Hudson Yards area,
as well as Seventh Avenue and Ninth Avenue. Tenth Avenue was
the second most popular location in 2017 with four leases totaling
1.66 million square feet. Seventh Avenue was third with six
leases totaling 1.65 million square feet. Ninth Avenue saw
1.07 million square feet leased, placing sixth overall.
Broadway, which finished fifth, had two leases on the West Side,
and three in Lower Manhattan, for a total of 1.14 million square
feet.
In total 34 of the 50 largest leases on CoStar's Top Manhattan
Office Leases list were located in Midtown, down from 37 leases in
the prior year, but up 21 percent to 10.2 million square feet
leased. On a square footage basis, leases in Midtown
accounted for approximately 72 percent of the leasing activity on
Manhattan's largest leases last
year.
Lower Manhattan activity jumped
to 11 leases in 2017, up from six in 2016. On a square
footage basis, Downtown leasing volume reached approximately 3.0
million square feet, or 21 percent of the total, up from 1.7
million square feet in the prior year.
In 2017, new leases outpaced renewals or expansions, comprising
30 of the 50 largest leases, up from 29 in the prior year.
The largest new lease of the year, BlackRock's 846,990-square-foot
lease at 50 Hudson Yards, was also the largest new lease
overall. The largest renewal, which had an expansion
component, was 793,687 square feet for 21st Century Fox
at 1211 Sixth Avenue.
"To attract and retain talent, the largest and most
sophisticated office tenants continue to demonstrate a preference
for new or like-new physical assets in highly accessible, amenity
rich environments," said Daniel
Moore, Rockefeller Group president and CEO-elect. "New
and renovated properties throughout Manhattan have benefitted from this trend,
with Midtown standing out as the location of choice, whether it be
in centrally located renovated buildings along Sixth and Seventh
Avenues or the new developments on the Far West
Side."
"The data supports the trends we are seeing take place on Sixth
Avenue every day," said Winston
Fisher, president of the Avenue of the Americas Association
and partner at Fisher Brothers. "Upgraded infrastructure, asset
revamps, transportation connectivity to every borough as well as a
host of neighborhood amenities are at the heart of this Midtown
movement. We are pleased to witness this trend and will
proudly continue to nurture it."
Six Manhattan Avenues or Streets remained among the top 10 for
consecutive years, including Sixth Avenue, Tenth Avenue, Broadway,
Fifth Avenue, Church Street and Madison Avenue. Newcomers to
the top 10 in 2017 included Seventh Avenue, Liberty Street, Ninth Avenue and Lexington
Avenue. Park Avenue, Water Street, Second Avenue and Third
Avenue fell out of the top 10 for 2017.
Among Manhattan's 50 largest
deals, Brookfield Office Properties led the industry in 2017 for
overall deal volume and square footage leased, which includes new
leases, renewals or expansions. Of transactions large enough
to make the list, properties owned by Brookfield accounted for 11 leases and
approximately 3.2 million square feet. Nine of the 11 leases
were new leases, for a total of 2.61 million square feet.
To view or download the report, which lists the Top Avenues and
other Manhattan leasing data,
visit:
https://www.rockefellergroup.com/wp-content/uploads/2018/03/Avenue-Report-F2018.pdf
About Rockefeller Group
Rockefeller Group is a leading real estate developer, owner and
investor, known since the development of Rockefeller Center for
pioneering large-scale urban mixed-use development. Visit
RockefellerGroup.com.
About the Avenue of the Americas Association
The Avenue of the Americas Association is a civic improvement
corporation that promotes the commercial welfare of "America's
Corporate Corridor" and New York
City. The Avenue of Americas, a thoroughfare of
approximately four miles long, is one of the City's most exciting
locations, boasting impressive architecture, corporate
headquarters, restaurants, entertainment, cultural attractions,
parks, plazas and business districts. Visit
www.aveoftheamericas.org.
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SOURCE Rockefeller Group