NYC Office Market Remains Uneven
December 1, 2010
By: Adam Pincus

It's the French to the rescue -- sort of. In the largest lease deal of the year, Paris-based financial firm Societe Generale last month agreed to take up to 560,000 square feet at 245 Park Avenue, moving east from offices on Sixth Avenue in Rockefeller Center.

And also last month, Natixis, a Paris- and Boston-based money manager, signed a 16-year deal for 182,200 square feet on the third, fourth and fifth floors at 1251 Sixth Avenue. A source said the actual starting rent was $59 per foot, and included $60 per foot in landlord improvements and 12 months of free rent.

In good times, this would be good news for Manhattan brokers. But in this market, those deals just underscored the ho-hum leasing environment. ...

...Jeff Peck, a senior managing director at Studley, noted that if a tenant on a renewal goes from 100,000 square feet to 110,000 square feet, the amount of space may actually be the same. The increase is often due to loss factor, which is how landlords account for and charge tenants for costs in common spaces in buildings. ...

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