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Sixth Avenue Repeats As Top Location for Manhattan's Largest Office Leases

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Sixth Avenue Repeats As Top Location for Manhattan's Largest Office Leases March 13, 2018 NEWS RELEASE FOR IMMEDIATE RELEASE AVENUE REPORT: SIXTH AVENUE REPEATS AS TOP LOCATION FOR MANHATTAN’S LARGEST OFFICE LEASES ‐ West Side leasing activity reaches nearly 60 percent of the total in 2017; Lower Manhattan activity climbs year-over-year ‐ New construction, redevelopment and renovations factoring into leasing decisions NEW YORK, March 13, 2018 – Midtown Manhattan remained the most active submarket for the city’s largest office leases in 2017, according to the second annual Avenue Report, produced by the Avenue of the Americas Association and member company Rockefeller Group, based on an analysis of office leasing data compiled by CoStar Inc. In particular, the West Side of Manhattan, led by Sixth Avenue, saw the majority of office leasing last year, or 29 of the 50 largest leases. Sixth Avenue ranked first among all locations in Manhattan for the second consecutive year, accounting for 10 of the 50 largest leases and a total of 3.27 million square feet, up nearly 42 percent from 2.31 million square feet in 2016. Other strong locations on the West Side included Tenth Avenue, home to several new office developments in the Hudson Yards area, as well as Seventh Avenue and Ninth Avenue. Tenth Avenue was the second most popular location in 2017 with four leases totaling 1.66 million square feet. Seventh Avenue was third with six leases totaling 1.65 million square feet. Ninth Avenue saw 1.07 million square feet leased, placing sixth overall. Broadway, which finished fifth, had two leases on the West Side, and three in Lower Manhattan, for a total of 1.14 million square feet. In total 34 of the 50 largest leases on CoStar’s Top Manhattan Office Leases list were located in Midtown, down from 37 leases in the prior year, but up 21 percent to 10.2 million square feet leased. On a square footage basis, leases in Midtown accounted for approximately 72 percent of the leasing activity on Manhattan’s largest leases last year. Lower Manhattan activity jumped to 11 leases in 2017, up from six in 2016. On a square footage basis, Downtown leasing volume reached approximately 3.0 million square feet, or 21 percent of the total, up from 1.7 million square feet in the prior year. In 2017, new leases outpaced renewals or expansions, comprising 30 of the 50 largest leases, up from 29 in the prior year. The largest new lease of the year, BlackRock’s 846,990-square-foot lease at 50 Hudson Yards, was also the largest new lease overall. The largest renewal, which had an expansion component, was 793,687 square feet for 21st Century Fox at 1211 Sixth Avenue. “To attract and retain talent, the largest and most sophisticated office tenants continue to demonstrate a preference for new or like-new physical assets in highly accessible, amenity rich environments,” said Daniel Moore, Rockefeller Group president and CEO-elect. “New and renovated properties throughout Manhattan have benefitted from this trend, with Midtown standing out as the location of choice, whether it be in centrally located renovated buildings along Sixth and Seventh Avenues or the new developments on the Far West Side.” -more- AVENUE REPORT / 2 "The data supports the trends we are seeing take place on Sixth Avenue every day,” said Winston Fisher, president of the Avenue of the Americas Association and partner at Fisher Brothers. “Upgraded infrastructure, asset revamps, transportation connectivity to every borough as well as a host of neighborhood amenities are at the heart of this Midtown movement. We are pleased to witness this trend and will proudly continue to nurture it." Six Manhattan Avenues or Streets remained among the top 10 for consecutive years, including Sixth Avenue, Tenth Avenue, Broadway, Fifth Avenue, Church Street and Madison Avenue. Newcomers to the top 10 in 2017 included Seventh Avenue, Liberty Street, Ninth Avenue and Lexington Avenue. Park Avenue, Water Street, Second Avenue and Third Avenue fell out of the top 10 for 2017. Among Manhattan’s 50 largest deals, Brookfield Office Properties led the industry in 2017 for overall deal volume and square footage leased, which includes new leases, renewals or expansions. Of transactions large enough to make the list, properties owned by Brookfield accounted for 11 leases and approximately 3.2 million square feet. Nine of the 11 leases were new leases, for a total of 2.61 million square feet. * * * Overall Leasing Activity by Deal Volume* Overall Leasing by Total Square Feet* Submarket 2017 2016 2017 2016 Midtown 34 37 10.2m 8.4m Midtown South 5 6 937,651 1.1m Downtown 11 6 3.0m 1.7m *Including all lease types, new leases, renewals, expansions. Sample size is the 50 largest Manhattan office leases in 2017. One transaction was outside these neighborhood boundaries in 2016, bringing that year’s total sample to 49. Overall New Leasing Activity by Deal Volume** Overall New Leasing by Total Square Feet** Submarket 2017 2016 2017 2016 Midtown 18 22 5.6m 4.1m Midtown South 4 4 587,874 702,240 Downtown 8 3 2.1m 412,043 **Including new leases only, excluding renewals, expansions. Sample size is the 30 largest new office leases from among the 50 largest office leases in Manhattan in 2017. There were 29 new leases among the 50 largest office leases in 2016. Top Avenues 2017 Top Avenues 2016 Rank Avenue/Street Volume SF Rank Avenue/Street Volume SF 1 Sixth Avenue 10 3.27m 1 Sixth Avenue 8 2.31m 2 Tenth Avenue 4 1.66m 2 Tenth Avenue 5 1.41m 3 Seventh Ave. 6 1.65m 3 Park Avenue 8 1.32m 4 Liberty Street 5 1.43m 4 Broadway 4 1.04m 5 Broadway 5 1.14m 5 Water Street 2 997k 6 Ninth Avenue 3 1.07m 6 Madison Ave. 5 750k 7 Fifth Avenue 3 981k 7 Fifth Avenue 5 726k 8 Church Street 3 903k 8 Second Ave. 3 696k 9 Lexington Ave. 4 861k 9 Third Avenue 2 594k 10 Madison Ave. 3 639k 10 Church Street 2 389k Sources: CoStar Inc. (as published in Crain’s New York Business February 26, 2018; and February 27, 2017); Rockefeller Group; Avenue of the Americas Association. * * * About Rockefeller Group Rockefeller Group is a leading real estate developer, owner and investor, known since the development of Rockefeller Center for pioneering large-scale urban mixed-use development. For nine decades the company has been trusted for its financial strength, stability and vision, and today remains committed to the selective acquisition, management and development of innovative, high-quality office, industrial, residential and mixed-use properties in urban centers and strategic distribution markets. The company combines the global perspective and market access of a sophisticated development and investment management platform, through its partnership with Tokyo-based Mitsubishi Estate Co. Ltd., and its strategic investments in independent property fund platforms in the United States and Europe. Visit RockefellerGroup.com. About the Avenue of the Americas Association The Avenue of the Americas Association is a civic improvement corporation that promotes the commercial welfare of "America's Corporate Corridor" and New York City. The Avenue of Americas, a thoroughfare of approximately four miles long, is one of the City's most exciting locations, boasting impressive architecture, corporate headquarters, restaurants, entertainment, cultural attractions, parks, plazas and business districts. The Association acts as an intermediary with government agencies and officials, and provides its membership with information on proposed laws and actions that will affect them. Issues such as transportation, physical improvements, signage, public safety, economic growth and homelessness are some of the challenges addressed by the Association in recent years. For more information or to reach the association, please visit www.aveoftheamericas.com. # # # Media Contacts: Rockefeller Group Avenue of the Americas Association Dwayne Doherty Sarah Berman 212-282-2130 212-450-7300 [email protected] [email protected] .
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