Real Estate Forum - October 2011

2
CBRE

AREA LEADER

MATTHEW VAN BUREN

President – New York Tri-State Region

Total Square Footage of Completed Leases: 22,568,473 SF

TOP-PRODUCING LEASING BROKERS:

The 1,046,262-square-foot lease that will bring Condé Nast Publications from Midtown to the Port Authority of New York and New Jersey’s One World Trade Center in Lower Manhattan also had a high-powered team on the tenant’s side of the negotiating table. Mary Ann Tighe, CEO of the New York tri-state region at CBRE, led discussions on behalf of the publishing giant in the city’s largest new lease since the peak of the market late last year.

CBRE represented Société Générale in a deal for a 444,000-square-foot block at Brookfield Office Properties’ 245 Park Ave. that will serve as the French banking firm’s new US headquarters; the 20-year deal was the largest lease transaction to be completed in Manhattan in 2010. And in July 2010, Allianz Global Investors of America LP had CBRE representation in a lease for 213,546 square feet at 1633 Broadway. In all, CBRE’s tri-state region completed 1,249 leases over the past 12 months with a combined value of $11.1 billion.

“It’s clear that we’re moving through the beginning stages of a new run-up,” says Matthew Van Buren, president of the New York tri-state region. “Pricing is rising. Net effective rents— those that hit the operating expenses of corporations who are leasing space—are rising. We’re about a quarter of the way back up off the bottom. That’s real progress.” What’s going to drive recovery, he adds, are jobs; he cites strong long-term employment growth across a number of sectors in the region.

MICHAEL MONAHAN

Vice Chairman

PATRICK MURPHY

Vice Chairman

MARK RAVESLOOT

Vice Chairman

3
Newmark Knight Frank

AREA LEADERS

BARRY M. GOSIN, Chief Executive Officer JAMES D. KUHN, President

Total Square Footage of Completed Leases: 15,500,000 SF

TOP-PRODUCING LEASING BROKERS:

As leasing agent for Malkin Holdings’ iconic Empire State Building at 350 Fifth Ave., Newmark Knight Frank has brought in more than one million square feet in leases there in the past year. That tally includes a multi-floor deal for nearly 490,000 square feet by global trading firm Li & Fung this past January. In June, fragrance giant Coty Inc. more than doubled its existing ESB space to nearly 188,000 square feet in a consolidation of its North American headquarters.

Additionally, NKF represented Pace University in its master planning effort, including structuring the ground lease for a new residence hall to be built at 180 Broadway for students attending the downtown Manhattan campus. In all, Newmark’s New York region negotiated 1,796 leases over the past year, more than any other brokerage.

“The New York City market continues to transition from the residual footprint of atrophied stock to upgraded buildings, exponential growth in the technology and software sectors, consolidation of the financial services group, a focus on Downtown to a full 24/7 neighborhood, new developments on the horizon including the Second Avenue subway and Hudson Yards development and the opening of the 9/11 Memorial,” comments David A. Falk, a principal and president of the New York Tri-State Region. All of these factors, he adds, support the city’s strength “as a global destination for business, politics and tourism.”