Transfer over, C-Observe — the Manhattan high-end workplace market’s new unique membership has a $200 per-square-foot admission cost.
A report 28 new leases have been executed at rents above $200 per sq. foot in 2024, The Submit has realized.
The offers represented the highest tier of the highest tier.
In the meantime, there was additionally a report, 212 offers inked for at the very least $100 per sq. foot, in keeping with a shocking new JLL report.
The JLL report highlighted a banner Manhattan leasing 12 months that noticed 30.2 million sq. ft in total space-grabbing – up 19.4% over 2023 and the primary time the 30-million mark was hit since 2018.
“The top-of-the-market [$100-and-up] leasing represented almost a third of the whole market for 2024,” marveled JLL vice-chairman Cynthia Wasserberger, chief of a JLL group that shared an “Analysis of Top Tier Transactions” with The Submit.
“When we peel back on the $200-plus market, people aren’t blinking at these rents any more. We saw nearly 600,000 square feet of them” in 2024, Wasserberger mentioned.
The bigger, $100-plus pinnacle class of 2024 accounted for an unprecedented 9.8 million sq. ft of area, as measured by JLL, handily whipping the earlier excessive of 8.8 million sq. ft in ancient-seeming 2019.
A mere 5.6 million sq. ft clocked in at $100-plus in 2023.
Though JLL named no tenants in its survey and later declined to call any when The Submit requested about them, market sources revealed that two main closings ended the 12 months with a bang on New 12 months’s Eve.
Stonepeak, which expanded from 55 Hudson Yards, and Visa every took 150,000 sq. ft of Warner Brothers Discovery sublease flooring at rents above $100 per sq. foot.
“Visa and Stonepeak were feeling heat to sign at 30 Hudson Yards by the end of the year,” one insider informed The Submit. “Because if they didn’t, they knew there was no shortage of others ready and willing to jump in.”
Nobody at CBRE, which labored on each offers, was capable of remark as a consequence of strict non-disclosure agreements.
The gold-standard transactions come because the Manhattan market slowly, and inconsistently, recovers from the pandemic.
Though JLL mentioned the “work-from-home dynamic is firmly in the rear-view mirror,” total Manhattan availability hovers round 18% regardless of a lot decrease emptiness charges in prime corridors akin to Park and Sixth avenues.
That after all means vacancies are a lot greater in different places. However homeowners of the premier properties are sitting fairly.
Park Avenue boasted essentially the most top-dollar offers, 52, in addition to 4 of the ten largest-by-size leases, JLL discovered. The Seagram Constructing had essentially the most top-tier offers with 12, of which 9 have been for $200 or extra.
Vornado Realty Belief earned bragging rights for the very best variety of C-Observe offers — 19 of them totaling over 1.361 million sq. ft.
The probably most profitable deal on a per-square-foot foundation was at SL Inexperienced’s One Vanderbilt, the place legislation agency McDermott, Will & Emery paid a staggering $280 psf for a high-floor suite, sources informed The Submit.
Wasserberger declined to verify or deny.
Resurgent monetary providers claimed 12.2 million sq. ft, or practically 40% of all 2024 offers –- in addition to 64% of the C-note class.
JLL cited “an almost insatiable demand for quality office space” by Wall Avenue – “which reasserted itself in dramatic fashion” after a interval of dominance by know-how companies.
Others within the $200-plus class have been, as per market sources, Tikehau Capital and Platinum Fairness at 9 West 57th St.; Affected person Sq. Capital on the GM Constructing; Leerink Companions and Freestone Grove Companions on the Seagram Constructing; and Westpac Advisors at Lever Home.
Within the mere $100-plus class, the most important by dimension seems to be Blackstone’s renewal and future enlargement at Rudin’s 345 Park Avenue.
Though JLL once more wouldn’t determine the tenant, its checklist of the most important transactions was topped by a single, 1.056 million square-foot dedication there. It sounds just like the 1.06 million square-foot deal by Stephen Schwarzman’s agency which the Business Observer reported final summer time.
C-Observe leases have been as soon as a lot scarcer, averaging solely a median of 110 a 12 months earlier than the pandemic — most in “boutique” areas of underneath 10,000 sq. ft.
JLL’s 2024 tally included 35 leases for greater than 50,000 sq. ft and 11 for over 200,000 sq. ft.
However demand for “trophy” digs is so sturdy that their provide is restricted and shrinking,” JLL mentioned.
Total, Manhattan rents in the present day common between $60-$90 per sq. foot in most Class-A buildings and far decrease in Class-B properties.
“The JLL numbers show how strong the appeal is of the very best buildings,” a supply at a distinct brokerage mentioned. “That means either brand-new ones such as One Vanderbilt and The Spiral, and older ones that either have fantastic views or are landmarks with megabucks upgrades, like Lever House.”
