City puts freeze on lease deals for
its agencies

Officials might fear impact of federal cuts

TRD New York /
Apr.April 11, 2017 08:45 AM

The city is holding off on letting its agencies lease space at new and existing offices — a possible sign that officials are waiting to see the impact of federal cuts before committing to long-term deals.

Stalled deals include the Human Resources Administration’s expected renewal of 264,358 square feet at Gould Investors’ 109 East 16th Street, the New York Post reported. The starting rent in the building is $76.83 per square foot but that’s expected to increase over the next couple of years. The Department of Investigation was also supposed to take 275,000 square feet for a new space at 180 Maiden Lane, but the city won’t give final approval to this and other deals, such as leases for the NYPD, HRA and Sanitation Department at 375 Pearl..

The Post posits that the city is delaying committing to these big leases until it’s clear how cuts proposed by President Donald Trump play out in the city.

Cathy Hanson, a spokesperson for the Department of Citywide Administration Services, said that there isn’t a specific blanket suspension of leasing deals.

“There is no across-the-board moratorium on leases,” she said. “We are working with agencies on a case-by-case basis to reassess their space needs.”

Still, the sudden halt of these deals has some landlords and tenants frustrated.

“Deals are pending all over the place that owners and agency heads had thought were done,” one source told the Post. [NYP]Kathryn Brenzel


Related Articles

arrow_forward_ios
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
Gap CEO Sonia Syngal (Getty)

Gap Inc. will close 350 stores and exit malls entirely

Gap Inc. will close 350 stores and exit malls entirely
Steve Cohen and Citi Field (Getty)

Citi Field lease clause could stymie billionaire’s quest for the Mets

Citi Field lease clause could stymie billionaire’s quest for the Mets
Consumers are using streaming services more than ever, and data center real estate is booming (iStock)

Real estate for data centers is having a moment

Real estate for data centers is having a moment
Paul Manafort and Manhattan district attorney Cyrus Vance, Jr. (Getty)

Manafort mortgage-fraud case dismissed, again

Manafort mortgage-fraud case dismissed, again
Howard Hughes’ Saul Scherl and a rendering of 250 Water Street (Getty, The Howard Hughes Corporation/SOM)

Howard Hughes to launch review process for $1.4B Seaport tower

Howard Hughes to launch review process for $1.4B Seaport tower
Data on third quarter CRE investments suggests a nationwide improvement, but Manhattan has been slow to recover (iStock)

NY falls behind Dallas, LA in CRE investment as deals surge nationwide

NY falls behind Dallas, LA in CRE investment as deals surge nationwide
arrow_forward_ios

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

Loading...