The Real Deal New York

Scorecard: Manhattan developers propose fewer office condos

A roundup of news and data on the residential and commercial markets

October 21, 2015 04:35PM
By Adam Pincus

From the October issue: Despite a stable office leasing market, few developers are looking to create office condominium units. The number of filings for office condo units in New York City is far lower this year, at 97, than the 151 units filed for in 2014. Office building owners and developers continue to favor leasing, so few plan to create office condos. The scant recent filings are an increase from zero ap- plications in 2011, and slightly ahead of 2012.“We have seen a little pickup of conversions and expect more to come,” said Michael Rudder, a principal with Rudder Property Group.


Hotel sales, meanwhile, are deep into record territory this year. With transactions topping $6.1 billion as of last month, a TRD analysis of CoStar Group data revealed that dollar volume was already nearly 50 percent higher than the record set in 2011, when buyers snapped up $4.2 billion.

Big deals like Anbang Insurance Group’s $1.95 billion purchase of the Waldorf-Astoria dominate the list. But there were many smaller deals, such as the Strategic Hotels & Resorts purchase of the remaining 49 percent stake in the JW Marriott Essex House at 160 Central Park South, valued at $195 million. “New York has been [a challenging] market in the past couple of years. Longer term, we continue to be big fans,” said Raymond Gellein, the REIT’s CEO, during a conference call with investors in August.