Inside SL Green’s One Vanderbilt, a test case for Midtown East

REIT held grand opening ceremony on Monday

TRD New York /
Sep.September 14, 2020 06:50 PM


One of New York City’s biggest office projects has officially debuted — and may serve as a test case for the broader transformation of its surrounding neighborhood.

On Monday, SL Green Realty, along with its partners, the National Pension Service of Korea and Hines, unveiled the 1,401-foot-tall One Vanderbilt to the public. The office tower is one of the marquee projects of Midtown East , which was rezoned in 2017; at least four other major office towers are planned as part of that effort. The rezoning of One Vanderbilt’s site was approved ahead of the broader neighborhood change.

The Real Deal sat down with SL Green’s Steve Durels and Robert Schiffer to discuss the tower’s opening. The interview took place on the skyscraper’s not-yet-leased 54th floor, which offers a striking, up-close view of the Chrysler Building and Empire State Building.

One Vanderbilt, whose anchor tenant is TD Bank, is roughly 70 percent leased, according to Durels, director of leasing and real property. He said the company is actively negotiating deals for two more floors in the building.

He said that while prospective tenants, as with any crisis, have been “on the defensive” during the pandemic, they haven’t sought to chip away at long-term rent obligations.

“There’s no question that with the disruption in the marketplace, tenants are expecting some shift in economics,” he said. “But what we’ve seen is less push on the face rents and more demand for greater concessions, translating into more tenant improvement allowance, more free rents.”

Construction on the project had been ahead of schedule, so the project’s timeline wasn’t too disrupted when work was partially shut down during the pandemic, Durels said. The tower’s opening was delayed by three weeks.

Write to Kathryn Brenzel at [email protected]


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
One Vanderbilt (Credit: Max Touhey)

SL Green opens One Vanderbilt as leaders urge return to office

SL Green opens One Vanderbilt as leaders urge return to office
Restaurant owner Daniel Humm and Eleven Madison Park (Getty, Google Maps, City Foodsters via Wikipedia)

Eleven Madison Park works out deal with landlord to reopen

Eleven Madison Park works out deal with landlord to reopen
410 Tenth Avenue with SL Green’s Andrew Mathias and Marc Holliday (Google Maps; SL Green)

SL Green gets $600M construction loan for 410 Tenth Avenue

SL Green gets $600M construction loan for 410 Tenth Avenue
From left: Parking garages at 81 Fleet Place, 240 Riverside Boulevard and 1515 Broadway (Google Maps, iStock)

Landlords claim parking garages owe $7.5M

Landlords claim parking garages owe $7.5M
SL Green CEO Marc Holliday, 590 Fifth Avenue and Thor Equities CEO Joseph Sitt (Holliday via Grant Lamos IV/Getty Images; Google Maps)

SL Green moves to foreclose on Thor’s 590 Fifth Ave

SL Green moves to foreclose on Thor’s 590 Fifth Ave
arrow_forward_ios

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

Loading...