I
t's time to look back at the past year in commercial real estate, and we're skipping the stats for some fun facts instead. Let's start with offices. Despite predictions that high interest rates would kill the market, Manhattan's top buildings are still in high demand. Vacancy rates are extremely low - between zero and 10% - on Park and Sixth avenues, at the World Trade Center, Brookfield Place, Hudson Yards, and other top-tier towers.
Fosun Five Holdings' renovation of 28 Liberty St. is a huge success, with nearly 100% occupancy. The company might even sell it for twice what they paid for it in 2013. On the other hand, the Waldorf-Astoria has been struggling since China's Anbang insurance bought it from Hilton in 2014. After years of construction delays, the hotel still hasn't reopened.
Two iconic skyscrapers are thriving: 30 Rockefeller Plaza and the Empire State Building. The former is home to tenants like Lazard and Deloitte, while the latter is over 90% leased after a major restoration project. However, two other skyline-defining landmarks are struggling - the Chrysler Building and Trump Organization's 40 Wall Street.
Jeff Sutton had a big year in commercial real estate, selling several high-end retail properties to luxury brands like Gucci and Prada. Munich Re, a reinsurance company from Germany, also made a significant investment in New York City real estate, buying out its partner at 320 Park Avenue for $500 million.
SL Green, the city's largest commercial landlord, is expanding its portfolio with new restaurants and retail spaces. Meanwhile, Macy's Brooklyn store might be sold to a new owner who plans to turn it into an "experiential entertainment retail" space. The trend of repositioning office buildings continues, with owners spending millions on renovations to attract top tenants.
Large retail-space deals have been slow to materialize this year, and some leases are falling through completely. Brooklyn Fare & Market finally opened at One Manhattan Square three years after signing the lease, while Simon Kim's lease for a three-eatery complex at 550 Madison Avenue is still uncertain.
