Deutsche Bank will move from Wall Street to Columbus Circle

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Welcome to what may become the future Deutsche Bank Center.

The German bank has decided to move its regional headquarters from Lower Manhattan to 1.2 million square feet at One Columbus Circle, The Post has learned.

“After a full evaluation of our real estate strategy, Deutsche Bank has decided to relocate its regional headquarters in New York from its current location at 60 Wall Street to a new location at One Columbus Circle,” a spokesman for the bank said in a statement.

A term sheet has been signed, sources said — not a lease, which could be the reason Deutsche Bank declined to provide other details like whether it would get naming rights to the Time Warner Center.

This reporter broke news of the move on Twitter.

Time Warner is planning to move from its namesake building to the new 30 Hudson Yards in 2021.

Related Cos. had developed Time Warner Center and sold the media company its office space — but bought it back when Time Warner agreed to move to Related’s new project at Hudson Yards.

The asking rent at the Time Warner Center was $135 per square foot.

“Related transformed Columbus Circle into a thriving mixed-use neighborhood and world-class destination. We are very pleased to work with our long-term partner as they re-imagine their north American headquarters,” said Jeff T. Blau, chief executive of Related Cos.

The first term of Deutsche’s lease at 60 Wall St. ends in June 2022. The bank had several renewal options and the building had new owners that laid out the red carpet for a lease renewal.

But the bank “wanted a fresh start,” one source said.

It loves the thriving Upper West Side neighborhood around the Time Warner Center — with its European feel as well as the stunning Central Park, river and city views, sources said.

The One Columbus economics will also work, sources said. Deutsche Bank will relocate roughly 500,000 square feet of occupancy to a new building in Jacksonville, Fla., where it already has a large presence.

Peter Riguardi, chairman and president of the JLL’s tri-state region, who represented Deutsche Bank, declined to comment. He had been pitching the Time Warner Center on behalf of Related Cos. but recused himself on this transaction.

“This is a decision they made because of their business and financial health,” said a disappointed Jessica Lappin, president of the Alliance for Downtown, who said she believed the bank’s employees wanted to remain in the area. “They are retrenching and reorganizing, and (that’s) why I can see being the anchor tenant at 2 World Trade was a bridge too far for them.”

The 2 World Trade Center tower would have been developed by Larry Silverstein, but it has taken several years to flesh out details, build and turn over for a move in.

“While today’s news is disappointing, we are very happy with Downtown’s growing momentum and optimistic about the World Trade Center’s continued success,” said a Silverstein spokesman. The area will welcome 4,000 GroupM and 2,000 Spotify employees to 3 WTC and 4 WTC, respectively, over the rest of the year.

Originally developed in 1987 for what was then called JPMorgan & Co., 60 Wall Street would have been the least expensive choice, sources said. But the 1.6 million-square-foot building would have required an entire redevelopment of its trading floors and now 30-year-old infrastructure.

https://nypost.com/2018/05/04/deutsche-bank-will-move-from-wall-street-to-columbus-circle/

By Lois Weiss

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/