Park Avenue landlords fret over Citi’s exit

New York /
Feb.February 10, 2014 12:20 PM

In the wake of Citigroup’s decision to move its global Park Avenue headquarters after many years, Midtown office landlords are concerned about the fate of the market in that once-dominant corridor.

The banking giant signed a deal in December to relocate from 399 Park Avenue at East 53rd Street to a two-building complex at SL Green Realty’s 388 And 390 Greenwich Street, as previously reported. The 399 Park Avenue landlord, Boston Properties, said it expects Citibank will hand off its 350,000-square-foot space after the lease expires in 2017. Now Boston will have to face the obstacle of securing a new flagship tenant.

Monday Properties CEO Anthony Westreich — whose firm owns 230 Park Avenue — called the decision “disconcerting” because, he told the Wall Street Journal, “In the Park Avenue corridor certainly financial service firms have been dominant in This Market Place.”

Office vacancies in the corridor rose to 11.6 percent from 9.1 in 2013’s first quarter, according to Cushman & Wakefield data, cited by the Journal. Rents have dipped to $79.19 per square foot in 2013’s fourth quarter from $80.42 per square during 2013’s first quarter.  [WSJ]Mark Maurer


Related Articles

arrow_forward_ios
Boston Properties’ Owen Thomas, Vornado Realty Trust’s Steve Roth, Paramount Group’s Albert Behler, SL Green’s Marc Holliday and Empire Real Estate Trust’s Tony Malkin  (iStock, slgreen.com, vno.com, paramount-group.com, esrtreit.com, LinkedIn)
Office landlords profess optimism despite dip in occupancy
Office landlords profess optimism despite dip in occupancy
Food52 CEO Amanda Hesser, Rudin Management president Eric Rudin and 1 Dock 72 Way in Brooklyn (Getty, Rudin)
Rudin’s Dock 72 notches Food52 as second tenant
Rudin’s Dock 72 notches Food52 as second tenant
Vice Media CEO Nancy Dubuc, Rudin Management's Bill Rudin and Dock 72 (Getty)
Vice plans move to Rudin’s Dock 72
Vice plans move to Rudin’s Dock 72
Boston Properties CEO Owen Thomas (Thomas by Axel Dupeux, iStock)
Work-from-home threat “overstated,” Boston Properties CEO says
Work-from-home threat “overstated,” Boston Properties CEO says
Gotham Organization Chairman Joel Picket with the proposed development at 130 Felix Street. (Getty, 130 Felix)
These projects just beat the rezoning deadline
These projects just beat the rezoning deadline
Boston Properties CEO Owen Thomas and 360 Park Ave South (Thomas by Axel Dupeux, 360 Park Ave South via CBRE)
Boston Properties to acquire 360 Park Ave South ground lease
Boston Properties to acquire 360 Park Ave South ground lease
Boston Properties CEO Owen Thomas (iStock, Thomas by Axel Dupeux)
Boston Properties to launch $2B joint venture
Boston Properties to launch $2B joint venture
An aerial of 341-347 Madison Avenue and Boston Properties CEO Owen D. Thomas (Google Maps, Real Estate Roundtable)
Boston Properties moves forward with teardown of ex-MTA HQ
Boston Properties moves forward with teardown of ex-MTA HQ
arrow_forward_ios

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

Loading...