As commercial landlords in New York City look for ways to sweeten leasing deals for tenants who might otherwise be lured by the trappings of brand new, amenity-laden office buildings, industry veterans acknowledge there is high demand for quality - and originality.
Speaking to the New York Post, Todd Soloway, head of Pryor Cashman's Real Estate Litigation and Hotel + Hospitality Groups, examined how this rise in new development is impacting the leasing market.
Seeking out distinctive features like customized build-outs, terraces and community spaces, tenants now want their offices to reflect the identity of their businesses. As a result, areas like Manhattan's Meatpacking District, long known as a hub for nightlife, are drawing the attention of developers looking to capitalize on the unique spaces and neighborhood qualities that appeal to commercial tenants. One such project, an entirely new 40 10th Ave., currently under development by Aurora Capital and William Gottlieb Real Estate, is set to open in 2019.
In other more commercially-established neighborhoods, such as Park Avenue in Midtown Manhattan, redevelopment of older office buildings has left companies in need of space to ride out extended periods of construction. Finding itself in that scenario, JPMorgan has temporarily abandoned its 270 Park Avenue headquarters as redevelopment begins, "leasing up and down Park Avenue in a ripple effect," Soloway explained. Other industry insiders agree, saying JPMorgan's leases and highly-anticipated new headquarters have reinvigorated value in Midtown.
This all bodes well for New York's commercial real estate market - especially if you're a tenant.
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