Office landlords try outdoor amenities to bring in tenants

New York /
Jan.January 25, 2010 09:37 AM

Office landlords are finding landscaped rooftops to be a relatively inexpensive way to add value and lure tenants in a challenging marketplace. At Richard Farley’s 160 Fifth Avenue, the 3,300-square-foot rooftop patio, with views of the Empire State, Flatiron and Clock Tower buildings, has been a big draw. RFR Realty has been able to lease half the building after a $30 million gut renovation despite scant demand for tenant space across the city. Vornado Realty Trust’s 330 Madison Avenue, along with 100 Park Avenue and 444 Madison Avenue recently added terraces to their lists of amenities. Whereas outdoor space used to bring big returns, now, landlords are more concerned with avoiding vacancies. Costing as little as $100 to $200 per square foot to build, owners could charge as much as 15 percent more per square foot for tenants taking advantage of the open air. LCOR recently added three terraces in its renovation of 545 Madison Avenue. “I’d love to tell you we were getting a premium rent [on the terrace space], but we’re not,” said David Sigman, senior vice present and principal at LCOR. “But they are bringing in a lot more interest.” [Crain’s]


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
Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)
No buzz, but Adam Neumann will take the $293M
No buzz, but Adam Neumann will take the $293M
William Vale Hotel in Williamsburg, Brooklyn (iStock, William Vale, Illustration by Kevin Cifuentes for The Real Deal)
Avi Philipson–led group to buy William Vale hotel
Avi Philipson–led group to buy William Vale hotel
Clockwise from top: Mayor Eric Adams, Bruce Teitelbaum, Adrienne Adams and Suri Kasirer (Getty/Adams via Paul Dilakian)
A make-or-break moment for NYC’s housing crisis
A make-or-break moment for NYC’s housing crisis
Order your copy now: “The New Kings of New York” arrives today
Order your copy now: “The New Kings of New York” arrives today
Order your copy now: “The New Kings of New York” arrives today
Photo illustration depicting landlords being outearned by their lenders (iStock)
More multifamily landlords are making less than their lenders
More multifamily landlords are making less than their lenders
arrow_forward_ios

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

Loading...