Office Leasing Breakthrough in Downtown Manhattan
Downtown Manhattan may be close to experiencing a much-needed office leasing breakthrough, possibly by the end of this year. Global trading firm Jane Street is in discussions with landlord Brookfield Property Partners to expand its existing space at Brookfield Place.
Jane Street Set to Expand
Jane Street, a quant trading firm with approximately 500,000 square feet at its current location at 250 Vesey Street, is looking to grow its space at 300 Vesey Street, next door to its current location. No details have been disclosed yet on the amount of extra space the company plans to take.
Market Rises
The Manhattan market has been experiencing a slower recovery compared to Midtown and Midtown South in recent years. However, the third quarter saw strong deal-making, with notable corporate expansions in the Class-A and "trophy" categories. The current market sentiment is boosted by the Federal Reserve’s 0.5% drop in the federal funds rate last month.
Landlords Rejoice
CBRE reports that lease activity in Manhattan has hit 5.47 million square feet, an increase of 8% from the five-year quarterly average. Year-to-date totals have reached 16.57 million square feet, a 32% spike from 2023’s numbers. Midtown and Midtown South have had particularly strong quarters, driven by large deals such as Blackstone’s 1 million square feet at 345 Park Avenue.
TD Bank Expands Office Space
TD Bank will be occupying an additional 26,255 square feet at 125 Park Avenue, bringing its total area to 130,057 square feet. This recent deal brings the tower, owned by SL Green Property, to 100% occupancy.
Conclusion
The prospect of Jane Street expanding its space at 300 Vesey Street will be a welcome development in Downtown Manhattan, which still lags behind Midtown and Midtown South. The overall Manhattan market is showing signs of recovery, helped by corporate expansions and strong deal-making. As office leasing activity continues to move forward, landlords can count on increased optimism and revitalization in the market.
FAQs
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What is Jane Street considering expanding to?
Jane Street is in talks to grow its space at 300 Vesey Street, a location next door to its current 250 Vesey Street offices. -
Which company is expanding its lease at 125 Park Avenue?
TD Bank is set to occupy an additional floor at 125 Park Avenue, bringing its total rentable space to 130,057 square feet and bringing the tower to full occupancy. - What boost has the Federal Reserve announced for the market?
A 0.5% drop in the federal funds rate, announced last month, is expected to alleviate pressure on the market, leading to increased optimism about office leasing activity.
