Park Avenue Boom Lift Midtown Office Market: ‘Never give up NYC’

Marking a historic moment of the office market in Midtown, the State Bank of India for rented nearly 42,000 square meters in three floors of 425 Park Ave. – Tower behavior in complete 100%.

There is a triumph for the developer L&L Holdings, who with his financial partners spent over $ 1 billion to develop the tower on Eastern Road 55. Commercial Observer first reported rent.

Most importantly, since the construction began six years ago, the Norman Foster designed tower has been closely viewed as a high -priced market barometer with new construction. Rentals at 425 park have reached $ 200 per square foot.

“Park Avenue has been on fire for 24 months,” said brokerage chairman Cbre Stephen B. Siegel, who was not invited to the Bank of India for which he was negotiated by Cumanan & Wakefield.

“Everything available is rented even though rents are growing,” he said.

But growth is not limited to Avenue Park. Sources told the post that a lease in waiting at 590 Madison Ave, who is losing the former IBM anchor at SL Green’s One Madison on Eastern Road 23, will restore the road tower 57 to over 90% housing.

The owner of the building, a pension fund in Ohio, has put it on sale with $ 1.1 billion-an investment market proof that still has to catch the main boom ..

The general rent of the Manhattan office went over the moon in January and February, according to new CBre data. About 5.13 million square meters for rent, 49% with 49% for the same period in 2024, marked the strongest start for one year since the ancient year of 2014.

The moment shows no sign of the saw. This month, Amazon bumps nearly 200,000 square meters in 237 Park Ave., its third large expansion in Manhattan since November.

While analysts are not familiar with the extent to which Manhattan differs from the rest of the country, worry about the “work-Fro-home”, the current real estate market tells a different story. While some old city downtown properties are still in trouble, most buildings Prime Minister Midtown – including Hudson Yards and Manhattan West on the remote West – are blooming second for unprecedented demand and limited supply.

“The market is back,” Siegel said.

“This proves what I have always said – never give up on New York City or the availability of capital here. It is clear to the corporations that they will grow. There is a closed question for the premium space and there is not much new product in the pipeline.”

New York area president Peter Riguardi, who was not involved in the 425 Park Agreement, took the same view. “At this point, there is no direct space available in the new construction wave in New York City. There are some sublime, but everyone has more perspective than there is enough room to rent.”

As measured by CBre, the February of 2.52 million square meters rented in Manhattan ran 53% in front of the five-year average of 1.65 million square meters.

The rental volume in February increased by double percentage with Dedit in the same month of 2024 in Midtown and Midtown South. Even in the weak and smallest market in the city center, February rent increased with an eye 287% (second mainly for a half million square meters expanding by Jane Street Capital in 250 Vesey St.

Uniuding, CBre found the lowest level of availability, 10.4%, in what he called the “best buildings” at the essence of Midtown, consisting of Grand Central and Plaza submarines, as well as the sixth Center Avenue/Rockefeller Center, Park Avenue and Fifth/Madon Avenue.

Meanwhile, a different CBre study found that Midtown Sixth Avenue/Center Rock Center has reduced availability to 13.4%.

“The combination of the question and the reduction of supply in the newest desirable buildings benefits Class A and A-Minus buildings along the sixth path,” noted Siegel.