Stalled commercial towers primed to hit the market at perfect time

New York /
Apr.April 27, 2011 01:25 PM

During the depths of the financial crisis, developers reconsidered and re-imagined their shelved projects, and now, construction is resuming on some of the city’s most anticipated towers, according to the New York Times. Brookfield Office Properties spent construction delays re-engineering a cheaper way to build a deck overlooking the rail yards as it prepares several towers for its 5.4-million-square-foot lot between Ninth and Dyer avenues and West 33rd and 31st streets. Pacolet Milliken Enterprises demolished an entire block along Sixth Avenue between 39th and 40th streets before the downturn, and has now completed the design for a 350,000-square-foot office building at the site. Meanwhile, Boston Properties is relaunching construction on a 1 million-square-foot tower at 250 West 55th Street, Vornado Realty Trust said it would consider beginning construction on a 1.25-million-square-foot tower, 20 Times Square, on top of the Port Authority Bus Terminal without an anchor tenant and Edward J. Miskoff Equities will break ground on 51 Astor Place this summer. These office buildings could be hit the market at the perfect time, as leasing activity in the $90-plus per square foot segment has picked up and vacancy rates are plummeting. And the current stock isn’t getting any younger. A recent Cassidy Turley survey that found 83 percent of Manhattan office buildings are at least 30 years old, and they won’t be getting any younger as these projects near completion. [NYT]


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Vornado’s Steve Roth with Penn1, Penn 2 and the Farley Building (Getty, VNO)
Vornado’s Roth “disappointed” in lack of distress as market shows signs of recovery
Vornado’s Roth “disappointed” in lack of distress as market shows signs of recovery
Boston Properties CEO Owen Thomas (iStock, Thomas by Axel Dupeux)
Boston Properties to launch $2B joint venture
Boston Properties to launch $2B joint venture
Jamie Dimon, Steve Roth, Donald Trump and 555 California St. (Trump, Getty)
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Vornado’s Steve Roth and 888 Seventh Ave (Getty, Google Maps, iStock)
Vornado sues Hongkun USA, seeking $1.1M in rent
Vornado sues Hongkun USA, seeking $1.1M in rent
From left to right: Gov. Andrew Cuomo, Tony Malkin, Larry Silverstein, Douglas Durst, Steven Roth and Bill Rudin. (Getty)
Vornado, Empire State Realty Trust pledge total carbon neutrality by 2035
Vornado, Empire State Realty Trust pledge total carbon neutrality by 2035
arrow_forward_ios

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

Loading...