Rise & shine: Why massive new Manhattan office towers are breaking ground now
They won’t top out until the end of the decade, but iconic new Manhattan office towers are finally going vertical.And no wonder: Asking rents for beautiful, technologically advanced office space in prime locations are soaring toward $200 per foot.Meanwhile, the success of JPMorgan Chase’s glamorous new headquarters at 270 Park Ave.
is serving as proof of concept for ambitious new skyline stunners.“It is creating a buzz about how transformative new construction is to the city,” said David Goldstein of Savills.“The new construction pipeline is definitely taking shape and the first out of the ground will have pricing and timing advantage.”One of the earliest will be BXP’s 343 Madison Ave., designed by KPF, with 937,000 square feet.
It has a letter of intent with C.V.Starr for a third of the 46-story tower, which won’t be delivered until 2029.Not to be outdone, Scott Rechler’s RXR and TF Cornerstone are talking to anchor office tenants for their jumbo 2.9 million-square-foot tower at 175 Park Ave.
Designed by Skidmore, Owings & Merrill, it would rise 1,575 feet above Grand Central Terminal and include a Hyatt hotel and transit improvements.Vornado and Rudin are also in the game.They just got city approval to build a new 1.7 million-square-foot tower at 350 Park Ave.
— with Citadel as partner and a 850,000-square-foot anchor space.And Silverstein Properties is closing in on a deal with American Express to move from Brookfield Place to a new 2 World Trade Center, now likely to be around 2 million square feet.In a move from Rockefeller Center, Deloitte has agreed to lease 700,000 square feet of Related’s 1.1 million-square-foot 70 Hudson Yards that is now under construction.Nearby, BXP and Joseph Moinian are inching closer to getting 3 Hudson Blvd.out of the ground.The reset in asking rents is also drawing investors into the market, spurring a slew of sales.One Vanderbilt’s developer, SL Green, swooped in to pay $136 million for the 800,000...