New York City:Renewals are becoming less prevalent among finance and law firms
The expanding pipeline of development and redevelopment projects has enabled financial and legal services firms to right-size and sometimes expand their footprints in recent cycles, placing downward pressure on renewal rates.
- In the 2017-2019 period, 44 percent of 100K+ s.f. financial services and legal services leasing activity occurred in buildings delivered or fully repositioned since 2010, increasing from 29 percent in the 2014-2016 period and 12 percent in the 2011-2013 period.
- In 2017, BlackRock signed a deal to relocate to 846,990 s.f. at 50 Hudson Yards, which is expected to deliver in 2022.
- Latham & Watkins signed a deal in 2018 to relocate to 406,661 s.f. at 1271 Avenue of the Americas, which completed a $325-million renovation program in 2019. Debevoise & Plimpton signed for 530,000 s.f. at 66 Hudson Boulevard in 2019, which is expected to deliver in 2022.
Source: JLL Research