Manhattan’s blockbuster office leases drop off in Q3: PHOTOS

Hospital operator’s $163M deal at 55 Water is quarter's most valuable

November 01, 2013 11:03AM
By Hiten Samtani

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Though the Manhattan office leasing market continued to get stronger in the third quarter, the number of big-ticket deals fell considerably – indeed, only two deals were valued north of $100 million, compared to seven in the previous quarter, according to The Real Deal’s quarterly ranking of Manhattan’s most valuable office leases.

Although the quarter saw several large deals, they were signed in buildings that had relatively low rents, according to Noam Shahar, director of research at real estate information company CompStak. In contrast, the second quarter saw several large deals in trophy buildings, Shahar added.

The operator of the city’s public hospitals and clinics signed the market’s most valuable deal — worth about $163 million — at 55 Water Street, according to the ranking, which covers office leases signed in Manhattan in the third quarter of 2013, ordered by dollar value over the lease term.

The Real Deal used data from CompStak cross-referenced with data from commercial brokerages, CoStar Group, news reports and interviews with commercial brokers and real estate players.

Though many brokers confirmed the transactions – which have been previously reported — none of them would comment on the financial terms of the deals, citing confidentiality agreements.