BlackRock zeroes in on 50 Hudson Yards for Headquarters

Rendering of 50 Hudson Yards (credit:   New York YIMBY  )

Rendering of 50 Hudson Yards (credit: New York YIMBY)

BlackRock is in talks with Related Companies to move its headquarters to 50 Hudson Yards.

The asset manager is negotiating to take 850,000 square feet at the planned 62-story office tower, the Wall Street Journal reported. The firm, which manages $5.1 trillion in assets, had also eyed Tishman Speyer’s the Spiral at 509 West 34th Street, but, according to the Journal, seems to be leaning toward Related’s property. If the deal goes through, it would be one of the biggest office leases in the city this year.

BlackRock currently leases 700,000 square feet in two buildings – Fisher Brothers and Soho China’s 55 East 52nd Street and Rudin Management’s 40 East 52nd Street. The leases expire in 2023. At last check, the average asking rents for flashy office space in Midtown was about $82 per square foot. That translates to BlackRock spending $69.7 million annually for the space at 50 Hudson Yards, though rent will likely vary.

The firm is expected to make a final decision as early as by the end of November.

A JLL team is leading the BlackRock’s search, as The Real Deal first reported in February. [WSJ] — Kathryn Brenzel

Investment Manager Staying Put at SL Green’s 600 Lexington Avenue

600 LEXINGTON AVENUE.

600 LEXINGTON AVENUE.

An international investment firm has re-upped its three-floor lease at SL Green Realty Corp.’s 600 Lexington Avenue.

Commercial Observer has learned that MKP Capital Management has renewed for more than five years at the building between East 52nd and East 53rd Streets. The firm currently occupies the 16th through 18th floors, according to a press release provided by the landlord.

An SL Green spokeswoman said the investment manager has been based at the 300,000-square-foot property since 2010. Asking rent in the renewal was $85 per square foot, she added.

SL Green leasing chief Steven Durels noted in prepared remarks that the 36-story tower is “a magnet for financial firms because of its boutique-size floors flooded with natural light, floor-to-ceiling windows and upscale lobby.”

John Mambrino and Evan Margolin of Savills Studley represented the tenant and declined to comment via a spokeswoman. Larry Swiger represented SL Green in-house.

Popular sandwich shop Pret A Manger signed a deal in June 2014 to occupy a portion of the building’s retail section, as CO reported at the time. The eatery took a  corner section at the Midtown property.

Some of the other office tenants at the building include Nissan and aviation firm NetJets, a Berkshire Hathaway subsidiary. 

https://commercialobserver.com/2016/10/investment-manager-staying-put-at-sl-greens-600-lexington-avenue/

Stat of the Week: $20.16 Per Square Foot

As the “unofficial” start to the summer season approaches, what better way to celebrate Memorial Day weekend than by heading outdoors for some fun in the sun? Since it’s not quite warm enough to head to the beach, let’s stroll through some of Manhattan’s most famous parks and enjoy the cool breeze and greenery. Everyone knows office buildings with views of the 843-acre Central Park command a premium compared to the rest of the office leasing market. Analyzing the office buildings around three other parks within Midtown and Midtown South uncover similar results, as the average asking rent of $92.16 per square foot for buildings surrounding Union Square, Madison Square and Bryant Park are $20.16 per square foot higher than the Manhattan average.

The first park on the list is Union Square Park, which is bordered by 10 office buildings totaling more than 978,000 square feet. Currently there is more than 79,000 square feet of vacant office space in this park set, for a vacancy rate of 8.1 percent. Despite a vacancy rate higher than Midtown South’s 6.1 percent vacancy, at $74.94 per square foot, asking rents in these buildings are $5.01 higher than the Midtown South average.

The second park examined is Madison Square Park, which is surrounded by 12 buildings totaling more than 6.9 million square feet. This park set is extremely tight with only 169,115 square feet of vacant space—a 2.4 percent vacancy rate—370 basis points lower than Midtown South. Asking rents in these buildings are averaging $77.86 per square foot, a $7.93 premium over the Midtown South average of $69.93 per square foot.

The last park analyzed, Bryant Park, resides within Midtown, and this park set contains 20 buildings totaling more than 9.6 million square feet. Despite having the highest vacancy of the three park sets, at 9.3 percent it is still 10 basis points lower than Midtown’s 9.4 percent vacancy. In the Bryant Park set, asking rents are $101.91 per square foot and command a $23.12 premium over the $78.79 per square foot Midtown average.

So, as you stroll through Manhattan’s parks this season, keep in mind that even though money doesn’t grow on trees, you need quite a bit to look at them from your office window.

https://commercialobserver.com/2016/05/stat-of-the-week-20-16-per-square-foot/