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
Carlyle's Kewsong Lee and Jason Hart with 22-22 Jackson Avenue (Carlyle Group, ODA Architecture)
For $85M, Carlyle nabs another LIC resi building
For $85M, Carlyle nabs another LIC resi building
KPF's A. Eugene Kohn and 11 West 42nd Street (Google Maps, KPF)
KPF expands at Tishman Speyer building after sweetener
KPF expands at Tishman Speyer building after sweetener
Tishman Speyer CEO Rob Speyer, Turner Construction CEO Peter Davoren and The Spiral at 66 Hudson Boulevard (Getty, Turner Construction, Tishman Speyer)
Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
Residents at Sven in Long Island City will be able to control the light show atop their building, as well as some in Manhattan. (Spireworks)
LIC tower giving residents chance to light up night
LIC tower giving residents chance to light up night
Tishman Speyer president Rob Speyer and Edgemere Commons (Getty)
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
Tishman Speyer CEO Rob Speyer, NYU President Andrew Hamilton and 11 West 42nd Street in NYC (Getty, CBRE)
NYU renews at Tishman Speyer’s 11 West 42nd Street
NYU renews at Tishman Speyer’s 11 West 42nd Street
Clay Grubb (Glen Lennox, Getty)
Grubb Properties tests affordable housing model in NYC
Grubb Properties tests affordable housing model in NYC
arrow_forward_ios

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

Loading...