The Real Deal New York

Tenants reign supreme at trophy office buildings

January 18, 2012 01:30PM

It’s still in many ways a tenant’s market in Manhattan office leasing, despite sunny numbers for 2011 overall, the New York Times reported.

“The fact is, there are a limited number of tenants who will pay three digits in this economic environment,” said Neil Goldmacher, a vice chairman at Newmark Knight Frank. While certain high-profile leases in 2011 might have made it seem as though office leasing had recovered fully post-Lehman, but numbers are actually nowhere near 2007, the Times said.

For instance, Kohlberg Kravis Roberts & Company signed a 64,000-square-foot lease at $147 per square foot for space at 9 West 57th earlier this year. But in the third and fourth quarters office leasing numbers faltered, as The Real Deal reported at the time.

“The message that the $100 deals are back is true, to a point,” said Alan Desino, an executive managing director at Colliers International, who represents tenants. “There are more deals than in 2010 or 2009, but it is still a 40 percent drop from the peak.”

Tara Stacom, vice chairman at Cushman & Wakeifield, agreed. “The foot came off of the accelerator,” she said, “but the foot is not on the brakes.” [NYT]