Apartments offices are devastating the country, as reported on Thursday by my colleague Emily Davis.
According to data from the CBRE Group, at the end of 2025, 23.3 million square feet in the 58 North -Rening Markets will be converted or demolished, compared to 12.7 million square feet of new offices.
But in the great Apple, the gap between the recent creation of office and the offices lost to conversion is even wider, which is found at Realty Check.
A recent and recent CBRE report said that when each conversion was completed in New York City, “currently in place, proposed and rumored from 4024,” would end, eliminate about 16.5 million square meters of the total inventory of Manhattan, a reduction of 3.9%.
The phenomenon causes the office market to look stronger by reducing vacancy rates. It is good news for obsolete building owners who can pay the high costs of conversions. It is bad news for tenants, as the decrease in supply means higher income in general.
But our survey of the situation clearly shows what the tendency has the impetus.
The Tsunami conversion has migrated from the Wall Street area to the city of Swamp.
The construction will begin this year at 5 Times Square, which RxR, SL GREEN and Apollo Global Management will be mainly converted into 1,250 rental apartments, a project provided by the city zoning changes. The tower, one of the four enlightened projects, which rose 25 years ago and defined the “new” Times Square-he once was in the home of Ernst & Young, but now it is mostly empty.
LOFT Metro developers and LOFT Metro Real Estate Investors go to the conversion of the former PFIZER headquarters to Third Avenue and East 42nd Street into 1,602 apartments.
Downtown, GFP Real Estate and Metro Loft are putting touches at 25 Water St., where tenants have begun to move to 1,230 rental apartments.
These and many other conversions are finished, set up, or set out to start imminently.
In comparison, Precious Pittle is underway in the new office construction (except for the almost finished tower of the Jpmorgan Chase headquarters, which will have 2.5 million square feet).
The only safe “go” of our radar is the 70 Hudson Yards of related companies, a 1.1 million square feet, which seems something secure with Deloitte signed as an anchor tenant.
Other projects planned or dreamed of office fall between “not yet”, “someday” and “if ever”.
BxP, formerly Boston Properties, is stuck to neutral at 343 Madison Ave., where he wants to build a 950,000 -feet tower. No tenants have been signed and work has not yet begun.
Until then, BxP is building a new glass entrance portal in Grand Central Terminal.
BxP and Moinian do not increase a project that calls 3 Hudson Boulevard from BxP and Moinian; Biznow reported that a $ 80 million loan that BXP incorporated into the joint company and are looking for new funding.
The tower of 1.8 million square feet of Vornado, Rudin and Ken Griffin are still in the revision of use of the city’s land and would not end for years in any case.
As for the Supertall known as 175 Park Ave. which will include the place of the Grand Hyatt hotel in East 42nd St., RxR and TF Cornerstone are looking for $ 4.84 billion in federal loans to fund the project.
Cbre in a separate survey found that recent and ongoing conversions eliminated 15.5 million square feet from the inventory offices, not remotely compensated for less than 2.5 million square feet of new offices.
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Image Source : nypost.com