11 Times Square asking rents fall 25 percent

New York /
May.May 06, 2009 04:20 PM
alternate textSteven Pozycki and 11 Times Square

Tough economic times have punctured the optimistic rent projections at the 40-story speculative office tower, 11 Times Square.

Steven Pozycki
, chairman of development firm SJP Properties, was quoted in January 2008 saying that the cheaper floors in the 1.1 million-square-foot building rising at the corner of Eighth Avenue and 42nd Street would command rents of $100 per square foot.

Today he told a crowd gathered at a B’nai B’rith luncheon at the Cornell Club in Midtown that he would be satisfied with rents that are about 25 percent lower per square foot.

“We would like a $100 [per square foot] rent but we would be real happy with a high $70 rent. So that is the kind of range that would give us a nice yield on the property,” he said.

He added that he expected the first lease to be signed by the end of the year. Meanwhile, in January last year, he said he expected half the building to be leased by the middle of 2008.

There were rumors in January that law firm Proskauer Rose was looking at space in 11 Times Square, but last month Real Estate Weekly reported that it was renegotiating at its current location at 1585 Broadway.

The decline in the expected rents at 11 Times Square are in line with the city conditions overall. Average Midtown asking rents by April had fallen 31 percent from early 2008 to $57.23, according to real estate firm Newmark Knight Frank.

Stephen Siegel, chairman of global brokerage for CB Richard Ellis, which is handling leasing for the building, said in an interview after the lunch that the average rent could still hit $100 per square foot once the building is fully leased.

“I still think we could arrive at or near that with the tower floors,” he said, adding that the building was expected to be completed this fall.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
From left: Amy Schumer and 190 Riverside Drive; Jimmy Fallon and 34 Gramercy Park East (Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons, iStock)
Jimmy Fallon, Amy Schumer selling Manhattan pads
Jimmy Fallon, Amy Schumer selling Manhattan pads
OKO's Vladislav Doronin and the Crown Building ( OKO Group, Aman)
Crown Building notches another peak sale with $55M condo
Crown Building notches another peak sale with $55M condo
Columbia Property Trust's Nelson Mills and 799 Broadway (Columbia Property Trust, 799 Broadway, iStock)
Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
East End Capital's Jonathon Yormak and 141 East Houston Street (141 East Houston Street, East End Capital)
Boutique LES office scores blockchain firm as anchor tenant
Boutique LES office scores blockchain firm as anchor tenant
Vice Media CEO Nancy Dubuc and 225 Broadway (Getty Images, Google Maps, iStock)
Refinery29 subleasing at 225 Broadway for move in with Vice
Refinery29 subleasing at 225 Broadway for move in with Vice
arrow_forward_ios

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

Loading...