Eight tenants committed to three of Skyline Developers’ Midtown properties recently inking more than 44,000 square feet in leases amid tightening availability in Manhattan’s Plaza District. Newmark Grubb Knight Frank (NGKF) exclusively represented Skyline in all the transactions, which included six new leases and two renewals.
“Tenants have continued to seek out top-end spaces this year in Midtown. Skyline’s properties were so attractive because of the stability that comes with multi-generational family ownership,” said William Cohen, an executive vice president at NGKF, who represented the landlord along with Associate Andrew Weisz. “Three of the new leases included installation of high-end, turnkey offices by ownership, while the remaining new tenants opted for upscale, existing pre-built spaces.”
Orin Wilf, president of Skyline Developers, stated, “I’m delighted to welcome our new tenants and am pleased to see existing tenants recommit to our properties.”
The leases included:
1040 Avenue of the Americas
- Workforce optimization firm nextSource, Inc. leased the entire 24th floor, totaling 6,895 square feet, for 10 years. Michael Poch of CBRE represented the tenant in its relocation from 3 Park Avenue.
- Boy Scouts of America leased 4,520 square feet on the 16th floor for 10 years. Lily Lin of AC Lawrence Commercial represented the tenant in its relocation from 271 Madison Avenue.
- Tour operator and destination management company New World Travel, Inc. signed a 10-year lease renewal for the entire 7th floor, totaling 12,007 square feet. Tim Freydberg and Larry Carrol of The Vortex Group represented the tenant.
- Air Berlin Americas, Inc. signed a short-term lease renewal for its 3,812-square-foot office on the 14th floor. Tim Freydberg and Larry Carrol of The Vortex Group represented the tenant.
20 West 55th Street
- Renewable Energy Trust Capital, Inc. leased 3,717 square feet on the 2nd floor for three years. It is the San Francisco-based company’s first location in New York.
- Marianas Fund Management, LLC leased 3,717 square feet on the 2nd floor for three years. Bryan Boisi and Nicholas Woodhull of Cassidy Turley represented the tenant in its relocation from 320 Park Avenue.
- Carnegie, Inc. is relocating within the building to a high-end, turnkey installation that the ownership is developing on the entire 12th floor. The 10-year lease is for 5,375 square feet.
265 Madison Avenue
- Physical therapist Health Plus Management Services, LLC leased the entire 4th floor, taking 4,213 square feet of space for 10 years. The company is relocating from its current location at 48 East 43rd Street. Michael Poch of CBRE represented the tenant. This transaction brings the building to 100% occupancy, inclusive of a brand new Pret A Manger that recently opened in the retail portion of the building.
“The brisk activity that Skyline experienced at its Class A properties is a microcosm of what is happening in the entire Midtown office market, especially at top-rate properties, following a quiet first quarter,” said Mr. Cohen. “The interest is being led by the traditional legal and financial sectors, but other types of tenants are also taking notice of the convenience and amenities that Midtown offers.”
In August, overall availability in Midtown improved to 11.2 percent, down from 12.7 percent in August 2013, while the Upper Fifth/Plaza District submarket-where 20 West 55th Street is located-dropped 2.8 percentage points during the same period, according to NGKF research. The Midtown average asking rent increased to $74.91 from $72.69 year-over-year. Leasing in the first half of the year totaled 4.8 million square feet, outpacing the 10-year quarterly average of 4 million square feet.
About Skyline Developers
Skyline Developers is the New York division of Garden Homes Development, a private real estate company based in Short Hills, N.J. Garden Homes owns and manages in excess of 50,000 apartment units and over 25 million square feet of retail centers, office buildings and hotels. With offices in New Jersey, New York, Tampa, Fla., and San Diego, Calif., and properties in over 37 states, Garden Homes is one of the largest builders of residential and commercial real estate in this country.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets. For further information, visit www.bgcpartners.com.