11 Times Square and 200 West Street

Ten large Manhattan office tenants have committed to lowering their energy consumption by 30 percent over the next ten years, Crain’s reported. The pledge will affect the efficiency of about 17 million square feet of office space.

Though new developments like 11 Times Square and One Bryant Park have energy-saving systems, the owners have had difficulty reigning in tenants’ high consumption. [more]

From the February issue:

11 Times Square

Four companies have signed — or are about to sign — new leases at 11 Times Square, the 40-story, SJP Properties-developed building also known as Times Square Plaza, the New York Post reported. One lease is for office space and three are for retail, leaving the building’s retail space fully occupied.

A digital marketing, media and commerce data provider known as eMarketer took a 53,573-square-foot office space. Though it’s not yet signed, sources told the Post that the deal will likely be finalized this week. The lease would bring the 1.1 million-square-foot property to more than 70 percent occupancy. [more]

From left: Steve Pozycki and 11 Times Square

Microsoft will pay rent in the low $60s per square foot to lease its 200,000-square-foot office space at 11 Times Square—a good deal compared to the roughly $75-per-square-foot that comparable properties are commanding, the Wall Street Journal reported. The deal is the result of the building’s developer — a joint venture between Steven Pozycki, the CEO of SJP Properties, and Prudential Financial — wanting to secure a major tenant inside the 1.1 million-square-foot building. [more]

11 Times Square

Long and drawn out negotiations have finally secured Microsoft a 230,000-square-foot lease and a new Midtown headquarters at 11 Times Square, the New York Observer reported. After being booted for Boston Properties’ under-construction 250 West 55th Street, Microsoft had been shopping for a new home, looking at 1290 Sixth Avenue and 641 Sixth Avenue. The office building at 11 Times Square , also known as Times Square Plaza, is a 40-story, 600-foot tower, that was built by a fund run by Prudential Financial and New Jersey-based developer SJP Properties for $950 million. The Microsoft lease is a huge success for the building, since it had struggled to secure tenants after the financial crises hit…. [more]

From left: 11 Times Square and Prudential Real Estate Investors CEO Allen Smith

The lead investor in SJP Properties’ $1.2 billion 11 Times Square admitted it overestimated the long-term strength of the market when it backed the struggling office tower (note: clarification appended). In an interview with the New York Times, Prudential Real Estate Investors CEO J. Allen Smith said there was no way he expected the property to be just 40 percent leased three years after opening. “If we had known it would go on this long, we probably wouldn’t have done it,” he said. [more]

From left: Microsoft Chairman Bill Gates, Boston Properties Chairman Mort Zuckerman, SJP Properties CEO Steven Pozycki and a rendering of 250 West 55th Street

Having been bumped from Boston Properties’ under-construction 250 West 55th Street, Microsoft now has the option of renewing its deal at the Vornado-owned, 2.1-million-square-foot 1290 Avenue of the Americas or relocating to 11 Times Square, the New York Observer reported.

The reason for being bumped from 250 West 55th Street? Law firm Kaye Scholer signed a letter of intent to take 260,000 square feet in the tower, as previously reported. This and another deal with the law firm Morrison Foerster on the tower’s lower floors leaves Microsoft with the top floors, which are too pricey. [more]

From left: SJP Properties CEO Steven Pozycki, Colliers' James Emden and 11 Times Square retail

SJP Properties’ 11 Times Square has finally landed a tenant for part of its 55,000-square-foot vacant retail space. The Wall Street Journal reported that a Russian restaurant company, backed by chain Global Food International, leased 25,000 square feet on the ground floor and mezzanine. [more]

From left: renderings of 250 West 55th Street, Manhattan West and 51 Astor Place

The city’s low office vacancy rates and slowly rising rents are overshadowing a disturbing office leasing trend, according to the New York Post. Ground-up office projects have been unable to secure major tenants, which in turn has stifled development.

Yesterday’s news that Silverstein Properties might cap off 3 World Trade Center at seven stories because of its inability to land a tenant, is just the most recent example. [more]

Steven Pozycki of SJP Properties and 11 Times Square

The developer of the half-empty speculative office tower 11 Times Square has filed documents related to dividing the sleek 40-story tower into two condominium units, records on the city’s Department of Buildings website show.

Developer Steven Pozycki’s New Jersey-based firm SJP Properties built the 1.1 million-square-foot tower between 41st and 42nd streets at 640 Eighth Avenue, which officially opened one year ago this month. [more]