Office leasing for Manhattaners is finally becoming easier. Landlords are offering significantly sweeter deals these days to make it more attractive for business people to find space to lease. This is a response to companies reducing the space they want to rent as well as the addition of new buildings throughout New York.
The Savills Studley Report showed that in the last three months there was a 32 percent increase in Manhattan leasing to 9.1 million square feet (substantially greater than the historical 7.5 million average). As such, asking rents dropped 2.2 percent in Q3 2017 to $73.21 per square foot.
It is hoped that by June – 18 months early – the purchase of Citigroup’s $2 billion headquarters (Tribeca’s 388-390 Greenwich Street) will be completed. SL Green is already the largest office building in New York and will use the money it receives from the sale – around $1.8 billion in proceeds – to pay back part of a corporate credit line, retiring the property’s $1.45 billion mortgage.
Citigroup will be charged a $94 million fee since it is terminating its lease so much earlier than scheduled. It started consolidation of its offices into the buildings after giving up its 399 Park Avenue headquarters, located in Manhattan.
In other news, blockchain startup Digital Asset Holdings (DAH) announced its most recent achievement in bolstering transaction privacy. With its procurement of Elevance digital Finance AG (technology firm that has produced a service giving fiscal bodies the capacity to “model and executive with certainty and finality”), DAH will be better equipped to efficiently serve its customers via its very own Digital Asset Modeling Language (DAML), which goes over and above the smart contracts protocol that self-executes contractual negotiations for it.