Canyon of zeroes: Lower Manhattan office rental market ‘suffering like no other’By Steve Cuozzo
July 9, 2023
There are a few reassuring market omens despite today’s record Manhattan 21% office availability.
SL Green sold a 49% stake in 245 Park Ave. in a deal that valued the building at a healthy $2 billion.
Tishman Speyer and Larry Silverstein pulled off a $330 million loan refinancing for their office tower at 11 W. 42nd Street.
But there’s precious little to cheer downtown, suffering from near-30% office availability and no relief in sight.
One highly successful Manhattan dealmaker with decades of experience termed our recent story on the plight of 111 Wall Street, where 1.1 million square feet stand vacant after a total redesign, “the tip of the iceberg.”
This broker said the 90 million square-foot downtown market “is suffering like no other in terms of all the maladies — high interest rates, remote work, antiquated office stock, upside-down financing” — facing the entire market.
Although the World Trade Center and Brookfield Place have relatively low availabilities, “Almost everywhere else it’s significantly higher.”
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Source:
https://nypost.com/2023/07/09/lower-manhattan-office-rental-market-suffering-like-no-other/
