Low bids for Pfizer building signal weak market: experts

June 28, 2010 11:00AM

The relatively low bidding offers coming in for the Pfizer building
at 685 Third Avenue reflect the weakness of the market, experts told
Crain’s. More than a dozen firms — which are rumored to include SL
Green Realty, Vornado Realty Trust and George Comfort & Sons — made
offers last week on the 650,000-square-foot property near Grand
Central. Several bids came in at around $150 million, or $230 a
square foot, compared to other recent sales of major office buildings, which have gone
for an average of $635 a square foot. Since the Pfizer property, between 43rd and 44th streets, will be empty, the buyer will need to spend

millions of dollars on marketing, leasing commissions and tenant
improvements according to Crain’s. Although leasing activity began picking up at the end of

2009, it’s still far below the higher levels of 2006 and 2007, and
experts are also still worried about the strength of the economic
recovery. CB Richard Ellis is marketing the property. [Crain’s]