The coronavirus pandemic is forcing hotel owners to consider new strategies for their properties — including turning them into offices.
The landmarked Bryant Park Hotel at 40 West 40 Street is the latest property to make the switch, the New York Post reported. The owners, Philip Pilevsky, Raymond Gindi and Joseph Chehebar, have tapped Philips International to market the entire 25-story building as “boutique” office space.
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The building’s 122,000 square feet will be available in blocks ranging from 1,900 to 7,535 square feet. Brokers told the Post that the owners are aiming for rents of $85 to $125 per square foot.
“They want to see what they can get,” one source said. “As bad as the hotel market’s going to be after the pandemic, there’s surprising optimism about offices.”
Recent big leases by firms like TikTok, AIG and Raymond James have recently brought some life back to the Midtown office leasing market. “Of course, the Bryant Park’s smaller floors make it a different kind of animal,” the source noted.
The Omni Berkshire Place hotel at 21 East 52nd Street is also reportedly likely to be converted to office space. Other hotels are currently being used to house the homeless.
The current owners acquired the property for $150 million in 1998. The 128-key hotel is also home to a ground-floor restaurant, Koi, and an underground lounge, Celon. [NYP] — Kevin Sun