Fitch’s renewal is further evidence of city’s stagnant office leasing market

New York /
Jul.July 10, 2012 09:30 AM

In Manhattan’s stagnant office leasing market even a renewal and expansion comes with bad news. The New York Post reported that Fitch Ratings renewed at 33 Whitehall Street in Lower Manhattan and expanded its footprint by 41,000 square feet to a total of 180,500. But at the same time, it’s abandoning 100,000 square feet it previously used nearby at 1 State Street Plaza, marking a net loss for the Lower Manhattan market.

The deal is typical of financial services consolidation that has become rampant in the Manhattan office market. Until the sector begins showing an appetite for more office space, Jones Lang LaSalle Tri-State President Peter Riguardi told the Post “we’re not going to have a boom.”

While the city’s office market is still among the best in the country and leasing did increase in the second quarter over an abysmal first quarter, the Post said tenant activity in new towers is most important to the city’s future. And the financial service firms haven’t shown any desire for brand new space in forthcoming towers like 1 and 4 World Trade Center, the International Gem Tower and Boston Properties’ 250 West 55th Street. And the booming tech sector can’t be counted upon as it shuns new Midtown development for flexible space in Midtown South. [Post]


Related Articles

arrow_forward_ios
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
arrow_forward_ios

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

Loading...