T
hird Avenue is gaining traction as a desirable location for office tenants, with many buildings now leasing to capacity. According to Dan Shannon of MdeAS, the area's popularity stems from its lower rents and higher floors with better views compared to more sought-after locations like Park and Madison avenues.

    While companies may sacrifice some prestige by moving east, they're finding attractive options on Third Avenue, including prebuilt offices ranging from 2,000 to 500,000 square feet. Many buildings are being renovated or repositioned to meet the needs of accounting, law firms, and healthcare offices, with floorplates tailored for these uses.

    Recent renovations have added to the avenue's appeal, including a $60 million overhaul at 850 Third Avenue and a $150 million investment in 825 Third Avenue by the Durst organization. The latter features Dynamic View windows, new infrastructure, and retail storefronts, as well as a new lobby and hospitality-focused amenity.

    Other notable renovations include Sage Realty's work on 777 Third Avenue and Nuveen's $40 million rebranding of 780 Third Avenue, now known as the "Gardens of 780." This 50-story tower boasts a distinctive Scandinavian red granite façade and offers amenities like a wellness center, theater, and conference space.

    As the market recognizes the benefits of these investments, asking rents on Third Avenue are rising. Leasing agent Paul Amrich notes that column-free floorplates in buildings like the "Gardens of 780" are particularly attractive to tenants. Meanwhile, several buildings are being converted for residential use, including 830 Third Avenue and 767 Third Avenue, with others expected to follow suit.