Financial services return 1.2 million square feet to market

New York /
Dec.December 23, 2008 06:15 PM

The space needs of financial and legal services firms that fueled the leasing surge in Midtown in recent years have gone in reverse, as the companies tighten their belts and shed space in the economic downturn.

So far, in the fourth quarter this year, finance companies such as Citigroup and MetLife dumped a total of 1.2 million square feet of sublease space onto the Midtown office market, while law firms returned 230,000 square feet, according to real estate services firm FirstService Williams. The total amount of sublease space returned to the market, including space from companies in other industries, was nearly 2.4 million square feet.

FirstService Williams’ research director Joyce Geiger said companies were shedding space that they had leased in anticipation of expansion, but put the space on the market this quarter to help improve their financial position in the new year.

“All the shadow space and hidden space, it looks like they decided to dump it before the year end to get it into this year’s financials,” she said.

Other financial firms returning sublease space in the quarter included MetLife, which is offering 105,000 square feet at 1095 Avenue of the Americas; Citigroup, which is offering 270,000 square feet at 153 East 53rd Street; and Bear Stearns, which is offering 97,000 square feet at 320 Park Avenue, FirstService Williams data showed.

Legal services firm Cadwalader, Wickersham & Taft returned to the market 40,000 square feet at One World Financial Center; Reed Elsevier is offering 22,500 square feet at 360 Park Avenue South; and Thacher Proffitt & Wood returned 148,000 square feet at Two World Financial Center, the data indicated.

Although the largest blocks of space were from financial services firms, other companies returned space to the market, including the Boy Scouts of America, which is offering 45,000 square feet in sublease space in the Empire State Building, FirstService Williams found.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
75 & 81 East Lake Dr. Unit 3 (Mary Lappin Marmorowski/Elliman)
A home on Lake Montauk for just $500K? Here’s why
A home on Lake Montauk for just $500K? Here’s why
Nick Mastroianni II sold the property back to the sellers at a small profit (Google Maps, Nicholas Mastroianni)
Seller’s remorse: Nick Mastroianni returns Jupiter mansion
Seller’s remorse: Nick Mastroianni returns Jupiter mansion
Guardian Realty Management CEO Anthony G. LaBarbera, Hudson Pacific Properties CEO Victor Coleman and rendering of the peoject. (Guardian, HPP, Winick)
L.A.-based lender puts FiDi project into construction with $120M loan
L.A.-based lender puts FiDi project into construction with $120M loan
From left: 80 Columbus Circle with Robert Stiller and 737 Park Avenue with Hamad bin Khalifa Al Thani (Photos via Google Maps, Agnovos, State of Qatar, Godsfriendchuck/Wikimedia)
Mandarin Oriental, 737 Park units sell at substantial losses
Mandarin Oriental, 737 Park units sell at substantial losses
SL Green CEO Marc Holliday (Getty, Sl Green)
SL Green shareholders cry foul on CEO bonus
SL Green shareholders cry foul on CEO bonus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...