Meatpacking District packs ’em in as retailers move Downtown

Office vacancy rate now less than one percent in the former industrial area

New York /
Mar.March 28, 2014 12:25 PM

Once home to hundreds of slaughterhouses and packaging plants, the Meatpacking District is undergoing a dramatic makeover, one that involves the construction of a number of sleek office towers. In turn, those new structures are attracting a whole new breed of upscale retail tenants into the area.

Some of the developers of the five office-and-retail developments currently going up in the neighborhood are Taconic Investment Partners, Thor Equities and William Gottlieb Real Estate, the Wall Street Journal reported.

Since most of the area is designated a historic district, developers have sought to keep their building heights in line with existing structures, the paper said. Architect Morris Adjmi is designing a six-story office building at 837 Washington Street, and a 10-story mixed-use tower is rising adjacent to High Line part at 860 Washington Street, as previously reported.

Since vacancy rates are low — less than 1 percent, according to commercial real estate firm Newmark Grubb Knight Frank — those towers can sell space for $85 to $125 per square foot, the Journal reported.

Retailers like the trendy eyewear purveyor Warby Parker have also set up shop in the area, which is Bound By Gansevoort Street, West 14th Street and Hudson Street on the Hudson River. Although high-end stores have mostly moved on from the area, landlords are asking $200 to $500 per square foot, the paper said. [WSJ]Angela Hunt


Related Articles

arrow_forward_ios
Rudin Management’s Michael Rudin and Industrious’ Justin Stewart with 32 Sixth Avenue in Tribeca (Rudin, Industrious, Google Maps)
Rudin teams up with Industrious for flex-office play
Rudin teams up with Industrious for flex-office play
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
More companies are keeping their offices, but are downsizing those spaces to allow employees to work remotely part-time. (iStock)
Office landlords offer discounts to lock in leases
Office landlords offer discounts to lock in leases
Rudin Management CEO Bill Rudin and 3 Times Square (Getty, FXCollaborative)
Rudin taps Cushman to market 3 Times Square, plans makeover
Rudin taps Cushman to market 3 Times Square, plans makeover
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
The gains accounted for nearly a third of overall job growth. (iStock)
Construction, leisure & hospitality jobs rebounded in March
Construction, leisure & hospitality jobs rebounded in March
317 Lenox Avenue (Google Maps)
David Werner acquiring Harlem office leasehold for $60M
David Werner acquiring Harlem office leasehold for $60M
arrow_forward_ios

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

Loading...