A New York landlord led by Nicholas Schorsch became the first publicly traded real estate company focused solely on the city with its listing on the New York Stock Exchange today...
New York REIT plans to boost income by increasing occupancies at its properties and raising rents where leases are below market rates, according to Schorsch.
“It’s an extraordinary time in the market,” he said. “We think there’s a lot of upside.”
Office rents in Manhattan are climbing as employment improves and growing technology and media companies seek more space. Landlords sought an average of $65.10 a square foot in the first quarter, up 8.6 percent from a year earlier, according to brokerage Studley Inc. The availability rate, a measure of empty space and offices scheduled to become vacant in the next 12 months, was 11.4 percent, down from 12.6 percent.
New York REIT, which will be listed under the symbol NYRT, has diversified in Manhattan by buying in submarkets that have good growth potential, said Woody Heller, an investment-sales broker at Studley, which arranged the purchase of an office building on West 38th Street for Schorsch’s company.
Among the landlord’s properties is 218 W. 18th St., an office building in midtown south, the area where demand from technology firms has helped tighten vacancies and push up rents. The 166,000-square-foot property is 84 percent occupied...New York REIT Gets Public Listing in Latest for Schorsch
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