Two Plaza District leases break boom-time price records

May 30, 2013 06:00PM

Two Recent Plaza District office leases have broken new price records, marking the most expensive office leases since the 2008 real estate boom, Crain’s reported. Hedge fund Ruane, Cunniff & Goldfarb and the Brazil-based Banco Itaú will pay just under $200 per square foot for space at 9 West 57th Street and the GM Building, respectively.

Ruane, Cunniff & Goldfarb signed for the top floor — 28,000 square feet — at the Sheldon Solow-owned 57th Street building, while Itaú expanded to 35,000 square feet from 25,000 at the 40,000-square-foot penthouse of the GM Building, at 767 Fifth Avenue.

What makes the deals all the more eye-popping is that Midtown rents are stagnating at around $60 per square foot, Crain’s noted.

“What drove these kinds of prices the last time was a vibrant economy and a shortage of space,” Joe Harbert, the eastern region president of Colliers International, told Crain’s. “There’s a shortage now of unique space, which is why these deals are happening.”

Sheldon Solow, Who Owns The West 57th Street building, was represented by Jones Lang LaSalle’s Scott Panzer. Studley’s Daniel Posy and Michael Goldman represented the hedge fund tenant.

Meanwhile, a partnership headed by Boston Properties owns the GM Building; they were represented by a CBRE team led by John Powers and John Maher. Itaú was represented by Cushman & Wakefield’s Michael Burgio. [Crain’s]Zachary Kussin