Resi development helping to drive office demand in LIC

Tishman Speyer has pre-leased most of massive three-building complex

New York /
Sep.September 19, 2016 01:02 PM

Residential development in Long Island City appears to be helping to drive demand for office and retail space in the neighborhood.

In the past decade, some 11,000 condo units and rental apartments have been built in the Queens neighborhood, with another 22,000 apartments planned or being built, the Wall Street Journal reported. The newspaper points to the fact that Tishman Speyer TRData LogoTINY and Qatari Diar (a subsidiary of Qatar’s sovereign wealth fund) have pre-leased a majority of their planned 1.1-million-square-foot office project as a sign of mounting demand. The developers pre-leased more than 800,000 square feet in their project, which features two 27-story office towers and a four-story retail building at Queens Plaza South and Jackson Avenue. Tenants include WeWork and Macy’s.

“We are in the infant stages of commercial development in Long Island City,” Evan Daniel, executive vice president of the Commercial and Investment Property Group for ModernSpaces, told the newspaper. “You have to have the people first to have the commercial and retail survive.

The neighborhood currently has 13 million square feet of office space, according to Cushman & Wakefield. Asking rents have been on the rise, jumping from $35 per square foot last year to $38 per square foot in 2016. The vacancy rate also fell from 9.9 percent in the second quarter of 2015 to 7.7 percent during the same time this year.  [WSJ] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Kohler Interiors' Rachel Kohler with  21-05 51st Avenue (Loopnet, Getty)
Tile retailer Ann Sacks inks 21K sf lease in Long Island City
Tile retailer Ann Sacks inks 21K sf lease in Long Island City
200 Park Avenue and Tishman Speyer's Rob Speyer(Tishman Speyer, Getty)
MetLife Building gets the luck of the Irish
MetLife Building gets the luck of the Irish
Tishman Speyer’s Rob Speyer and Latch’s former CEO Luke Schoenfelder
Latch reveals more financial statements to be unreliable
Latch reveals more financial statements to be unreliable
A photo illustration of missing Tishman Speyer executive Ana Walshe and charged husband Brian Walshe (Getty, LinkedIn)
Tishman Speyer exec had $3M portfolio when she disappeared
Tishman Speyer exec had $3M portfolio when she disappeared
TF Cornerstone's Fred Elghanayan, 2-20 and 2-21 Malt Drive (Getty, SLCE Architects)
TF Cornerstone lands $725M for next Long Island City megaproject
TF Cornerstone lands $725M for next Long Island City megaproject
A photo illustration of missing Tishman Speyer executive Ana Walshe and charged husband Brian Walshe (Getty, LinkedIn)
Husband charged with murder of Tishman Speyer exec
Husband charged with murder of Tishman Speyer exec
Tishman Speyer's Ana Walshe
Husband under investigation over disappearance of Tishman Speyer exec
Husband under investigation over disappearance of Tishman Speyer exec
A photo illustration of Savanna co-chairman and president Christopher Schlank and One Court Square in Long Island City, Queens (Getty, Savanna, LoopNet)
Savanna’s LIC tower signs health care giant
Savanna’s LIC tower signs health care giant
arrow_forward_ios

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

Loading...