As Manhattan developers plan millions of square feet of office towers featuring the most modern amenities, some of their biggest potential tenants have decided they’re better off staying in their current homes.
Rising demand for space from Internet and media firms helped boost rents at office buildings south of midtown Manhattan by 5.6 percent in the first quarter, according to a report by Cushman & Wakefield Inc.
Manhattan’s Plaza district, the area near Central Park that commands the nation’s highest office rents, has a glut of space as financial firms cut back and tenants seek trendier neighborhoods south of Midtown.
Brookfield Office Properties Inc. is seeking to gain an edge in the construction of millions of square feet of office space on Manhattan’s west side by using bridge-building technology to cover a 65-foot railroad trench.
Downtown Manhattan’s office vacancy rate jumped in the third quarter to the highest level since 2004 as new space came on the market from financial companies, according to brokerage Cushman & Wakefield Inc.
Scott Rechler’s RXR Realty LLC, one of the most aggressive buyers of New York City offices since the financial crisis, agreed to acquire a 99-year leasehold interest in 75 Rockefeller Plaza, a person familiar with the deal said.