Global Holdings holds out for higher rents at 120 Park Avenue

Despite low Manhattan office vacancy rates, five floors of Global Holdings’ 600,000-square-foot, 26-story office tower at 120 Park Avenue and 42nd Street remain empty, Crain’s reported, with some suggesting that the landlord is purposefully dragging its heels and holding out for higher rents as the market begins its recovery. 

“[The building] was sold at the peak of the market for a very high price,” said Ken McCarthy, senior economist and senior management director at Cushman & Wakefield. “If you can afford to wait… it makes sense to hold back.”

Global Holdings’ strategy may be panning out, Crain’s said. The landlord is currently trading proposals for the available 114,000 square feet, with a number of tenants, asking around $85 per square foot, according to Paul Glickman, senior vice president of Jones Lang LaSalle.

Media company Bloomberg News signed a lease for 12 floors earlier this year, leaving only floors 22 through 26. [Crain’s]