Eight tenants committed to three of Skyline Developers’ Midtown properties recently inking more than 44,000 square feet in leases amid tightening availability in Manhattan’s Plaza District.
Newmark Grubb Knight Frank (NGKF) exclusively represented Skyline in all the transactions, which included six new leases and two renewals.
“Tenants have continued to seek out top-end spaces this year in Midtown. Skyline’s properties were so attractive because of the stability that comes with multi-generational family ownership,” said William Cohen, an executive vice president at NGKF, who represented the landlord along with Associate Andrew Weisz. “Three of the new leases included installation of high-end, turnkey offices by ownership, while the remaining new tenants opted for upscale, existing pre-built spaces.”
Orin Wilf, president of Skyline Developers, stated, “I’m delighted to welcome our new tenants and am pleased to see existing tenants recommit to our properties.”
Workforce optimization firm nextSource, Inc. leased the entire 24th floor at 1040 Avenue of the Americas, totaling 6,895 s/f, for 10 years. Michael Poch of CBRE represented the tenant in its relocation from 3 Park Avenue.
Also at 1040 Sixth, Boy Scouts of America leased 4,520 s/f on the 16th floor for 10 years. Lily Lin of AC Lawrence Commercial represented the tenant in its relocation from 271 Madison Avenue.
Tour operator and destination management company New World Travel, Inc. signed a 10-year lease renewal for the entire 7th floor, totaling 12,007 square feet. Tim Freydberg and Larry Carrol of The Vortex Group represented the tenant.
Air Berlin Americas, Inc. signed a short-term lease renewal for its 3,812 s/f office. Tim Freydberg and Larry Carrol of The Vortex Group represented the tenant.
At 20 West 55th StreetRenewable Energy Trust Capital, Inc. leased 3,717 s/f; Marianas Fund Management took 3,717 s/f. Bryan Boisi and Nicholas Woodhull of Cassidy Turley represented Marianas in its relocation from 320 Park Avenue.
At 265 Madison Avenue Physical therapist Health Plus Management Services, leased the entire 4th floor for 10 years. The company is relocating from 48 East 43rd Street. Michael Poch of CBRE represented the tenant. This transaction brings the building to 100 percent occupancy, inclusive of a brand new Pret A Manger that recently opened in the retail portion of the building.
“The brisk activity that Skyline experienced at its Class A properties is a microcosm of what is happening in the entire Midtown office market, especially at top-rate properties, following a quiet first quarter,” said Cohen. “The interest is being led by the traditional legal and financial sectors, but other types of tenants are also taking notice of the convenience and amenities that Midtown offers.”
In August, availability in Midtown improved to 11.2 percent, down from 12.7 percent in August 2013, while the Upper Fifth/Plaza District submarket — where 20 West 55th Street is located — dropped 2.8 percentage points during the same period, according to NGKF research. The Midtown average asking rent increased to $74.91 from $72.69 year-over-year.