Recent uptick in anchor-sized activity due to forward commitments towards new construction in New York
49 leases exceeding 250,000 square feet have been signed since 2017, eclipsing the total in the prior five years.
October 23, 2019
- 49 leases exceeding 250,000 square feet have been signed since 2017, eclipsing the total in the prior five years. 16 of the leases since 2017 have been towards new construction, of which 9 were forward commitments to space at least two years before possession and 9 were towards assets located in Hudson Yards / Manhattan West.
- New construction leasing has been the predominant driver of rent growth across Manhattan during the current cycle. Buildings delivering post-2010 have experienced 6.3 percent effective annual rent growth over the past five years, compared to just 0.2 percent for non-new or renovated assets.
- Four large-scale leases were signed in the third quarter of 2019: law firm Cravath, Swaine & Moore LLP signed a 481,000-square-foot lease to anchor 2 Manhattan West; WeWork leased 362,197 square feet at 437 Madison Avenue; Google finalized a 1.3 million-square-foot lease for its second Manhattan headquarters at St. John’s Terminal; and Publicis renewed and expanded for 960,000 square feet at 375 Hudson Street.
Source: JLL Research