Favorable deal terms helped Joseph Cayre land law firm Baker & McKenzie as a new tenant for the building at 452 Fifth Avenue he acquired last year, according to AM Law Daily, even as most law firms this year have chosen to renew rather than relocate.

Studley CEO Mitchell Steir worked as Baker & McKenzie’s broker and said that although the company wasn’t sure it wanted to leave its former office at 1114 Sixth Avenue, it eventually made the move because of the good deal and the opportunity to downsize, which is becoming a trend among law firms. [more]

In a sign that challenges remain for the office leasing market in Manhattan, the vacancy rate for Class A space in all three markets rose in October from the month prior, a new report from commercial services firm Jones Lang LaSalle shows.

The vacancy rate in Class A properties in Midtown rose for the first time all year, according to the report. In addition, the rates were up in Midtown South by .1 point to 9.6 percent and .2 points higher Downtown.

“Midtown’s Class A vacancy rate reversed direction in October, rising for the first time this year,” the report says. It attributed the rise in part to the addition of 300,000 square feet of space to the market at 452 Fifth Avenue at 40th Street. TRD [more]

According to the Association of Foreign Investors in Real Estate, the United States is still the most attractive country to invest in for real estate. The top three cities, as rated by AFIRE, are Washington D.C, New York City and San Francisco. Based upon investment sales this year, it looks like Israeli investors who have invested in the Bi [more]

Joseph Cayre and 452 Fifth Avenue (building photo source: PropertyShark)

The first major non-distressed office building sale Manhattan has seen in two years closed Tuesday, according to Globe St., with the $350 million sale-leaseback of the HSBC tower at 452 Fifth Avenue between 39th and 40th streets. The purchase was made by a special purpose vehicle known as 452 Fifth Owners LLC, which includes Joseph Cayre’s Midtown Holdings, Israeli-based Koor Industries, and Property and Building Ltd. Carl Schwartz, chair of law firm Herrick Feinstein’s commercial real estate department, said that the deal is a good omen for the market. “This transaction would be notable in any market, but represents a particularly good sign in light of the real estate world of 2010,” Schwartz said. “My sense is that there are lenders out there who want to put money out for the right deal.”

Joseph Cayre of Midtown Equities and 452 Fifth Avenue (Photo source: PropertyShark)

Less than a day has passed since Midtown Equities and Israeli holding company IDB Group announced their acquisition of HSBC Bank USA’s New York headquarters at 452 Fifth Avenue, between 39th and 40th streets, but Joseph Cayre, founder and principal of Midtown Equities, said that there will be more deals like it. This was the first time Midtown Equities had teamed up with IDB, but
Cayre said the companies are now working on six or seven projects
together in New York City, where they will be “either buying buildings
outright or buying first mortgage notes from banks.” Cayre said at 452 Fifth Avenue he already has two parties seriously considering signing a lease on the top 18 floors that will be vacant come 2011. HSBC will continue to occupy the remaining 11 floors of the 29-story, 865,000-square-foot building, which went for $330 million, or $400 per square foot, for a 10-year term. [more]