Brookfield using retail to lure office tenants to LoMa tower

New York /
Dec.December 23, 2013 09:48 AM

Brookfield Office Properties is looking to use its swanky retail space at Brookfield Place in Lower Manhattan as a lure to attract office tenants. After a $250 million overhaul of the 250,000-square-foot retail space, Brookfield hopes that high-end tenants such as Hermès and Burberry will appeal to potential office clients and convince them to fill the 8.5 million-square-foot office space.

“A lot of what we are creating downstairs is to create value upstairs,” David Cheikin, Brookfield’s vice president of the New York region, told the Wall Street Journal.

Base retail rents at the tower are between $200 and $600 per square foot, representatives for the real estate investment trust told the Journal. In comparison, the average base retail rent in Lower Manhattan in the third quarter of 2013 was about $277 per square foot, according to Cushman & Wakefield data seen by the newspaper.

Brookfield is on track to fully lease out the retail space at the property, company executives added, but the building’s success will ultimately depend on its ability to snag office tenants, John Bejjani, an analyst with Green Street Advisors, told the Journal. “Granted, retail space commands higher rents,” Bejjani said, “[but] you are comparing about nine million square feet to a couple of hundred thousand square feet of retail space.” [WSJ]Hiten Samtani


Related Articles

arrow_forward_ios
Brookfield Property Partners CEO Brian Kingston and 300 Vesey Street, at far left (Brookfield)
Brookfield scores $224M refi on Battery Park office tower
Brookfield scores $224M refi on Battery Park office tower
Gov. Andrew Cuomo and Brookfield’s Brian Kingston with the High Line and the Moynihan Train Hall (Getty)
New High Line section will connect to Moynihan Train Hall
New High Line section will connect to Moynihan Train Hall
Noom CEO Saeju Jeong and 5 Manhattan West (Twitter; Wikipedia Commons)
Noom inks 113K-sf sublease at 5 Manhattan West
Noom inks 113K-sf sublease at 5 Manhattan West
New York’s malls see slow recovery after reopening
New York’s malls see slow recovery after reopening
New York’s malls see slow recovery after reopening
RFR Realty's Aby Rosen, Brookfield's Ric Clark and the Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)
Aby Rosen’s new landlords move to take control of Lever House
Aby Rosen’s new landlords move to take control of Lever House
OTC Markets Group signs a 33K sf sublease at Brookfield Place
OTC Markets Group signs a 33K sf sublease at Brookfield Place
OTC Markets Group signs a 33K sf sublease at Brookfield Place
Saks Fifth Avenue failed at a Manhattan mall. A flexible office space provider will replace it.
Saks Fifth Avenue failed at a Manhattan mall. A flexible office space provider will replace it.
Saks Fifth Avenue failed at a Manhattan mall. A flexible office space provider will replace it.
Pharma R&D firm relocating offices to Lower Manhattan following $7B merger
Pharma R&D firm relocating offices to
Lower Manhattan following $7B merger
Pharma R&D firm relocating offices to
Lower Manhattan following $7B merger
arrow_forward_ios

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

Loading...