Office vacancies on Sixth Avenue could reach 20-year high

TRD NEW YORK /
Jan.January 16, 2013 03:00 PM

As large office tenants either move or lay off employees, vacancies in the Sixth Avenue submarket could hit 12.5 percent—a 20-year high, Crain’s reported. The vacancy rate currently stands at 10.7 percent.

AXA Equitable, the life insurance company, has plans to downsize its 1290 Sixth Avenue operations and move employees to Jersey City, potentially putting 400,000 square feet of its current 500,000-square-foot space on the market, sources told Crain’s.

The exodus from Sixth Avenue began when Societe Generale left 400,000 square feet at 1221 Sixth Avenue for new digs at 245 Park Avenue. Even Dewey & LeBoeuf’s collapse delivered 500,000 square feet of space at 1301 Sixth Avenue.

Most recently, Microsoft landed a deal in late December for space at 11 Times Square, leaving its 1290 Sixth Avenue home.

“If you look at what’s going on in the economy right now, it’s affecting corporations and their decision making and Sixth Avenue is the home of the large corporate user,” Ken McCarthy, chief economist at Cushman & Wakefield, told Crain’s. “They’re the ones being cautious right now. They’re not leasing spaces and in some cases they’re giving space back.” [Crain’s]Zachary Kussin

 

Related Articles

arrow_forward_ios
Time Out Market at 916 West Fulton Market and Revival Food Hall at 125 S. Clark Street 

Does Chicago still have an appetite for food halls?

Savills vice chairman Peter Hennessy

Peter Hennessy heading to Savills

Cushman & Wakefield CEO Brett White and the Oculus (Credit: Cushman & Wakefield and Unsplash)

Cushman’s management contract at Oculus extended despite woes

The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

Bruce Mosler and Simon Ziff

Simon Ziff and Bruce Mosler join lineup at Future City 2020

151-45 6th Road and Stephen Preuss

Massive, controversial Queens site back on market

The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

arrow_forward_ios
Loading...