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Tag: Office Leasing

  • Office Leasing Down 6% In July-September In Top 8 Cities: Report

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    New Delhi:

    Leasing of office spaces fell 6 per cent across top eight cities during September quarter on lower demand amid global uncertainties, Knight Frank said on Tuesday, but asserted that the full calendar year will see a record absorption of workspaces.

    In its report released through a webinar, real estate consultant Knight Frank India mentioned that the gross leasing of office spaces stood at 17.8 million square feet in the eight major cities during July-September, a decline of 6 per cent from the year-ago period.

    Leasing by foreign firms to set up Global Capability Centers (GCCs) fell 20 per cent to 5.7 million sq ft from 7.1 million sq ft, dragging the absorption number in the latest September quarter, the consultant data showed.

    Nevertheless, the total gross leasing during January–September grew 24 per cent annually to 66.7 million sq ft.

    “We expect the gross leasing of office space to be record this year at around 85 million sq ft despite many global headwinds,” said Viral Desai, Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.

    However, he said the leasing activities trend in the first three quarters of 2025 calendar year do indicate sluggishness in the market.

    Desai pointed out that the gross leasing, which stood at 28.2 million square feet during January-March period of 2025, declined to 20.7 million square feet in April-June and 17.8 million square feet in the latest September quarter.

    City-wise data showed that the leasing of office spaces in Bengaluru fell 21 per cent to 4.2 million square feet during July-September period. The leasing grew in the IT city 63 per cent to 22.5 million sq ft.

    In Hyderabad, the leasing grew 33 per cent to 2.9 million sq ft in the September quarter, while the absorption rose 21 per cent to 8.8 million sq ft in the first nine months of 2025.

    The office leasing in Chennai rose 9 per cent in July-September to 2.8 million sq ft while the absorption of workspaces surged 41 per cent to 7.9 million sq ft in January-September period.

    In Delhi-NCR, the office leasing dropped 15 per cent to 2.7 million sq ft in the latest September quarter, but absorption grew 12 per cent to 9.9 million sq ft in the January-September period.

    Pune saw a decline of 9 per cent in September quarter to 2.3 million sq ft, but demand rose 7 per cent to 7.4 million sq ft in the first nine months of this year.

    The office leasing in Mumbai fell 27 per cent to 1.9 million sq ft during the latest September quarter. The financial capital saw a 12 per cent decline in January-September to 7.4 million sq ft.

    In Kolkata, the leasing jumped 190 per cent to 0.5 million sq ft during July-September. The city saw a 87 per cent growth in January-September to 1.6 million square feet.

    Lastly, the leasing of office space in Ahmedabad rose 13 per cent in September quarter to 0.4 million sq ft. The city witnessed a fall of 41 per cent in January-September to 1.2 million sq ft.

    (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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  • Capstone taps JLL for Franklin Avenue Plaza leasing | Long Island Business News

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    THE BLUEPRINT:

    • acquired for $41M

    • appointed exclusive leasing agent for 523,758 SF complex

    • Office space available at $36/SF with modern amenities

    • Current tenants include Merrill Lynch, Stifel, and ShelterPoint

     

    The new ownership of a sprawling Garden City office complex has retained JLL as the property’s exclusive leasing agent. 

    Known as Franklin Avenue Plaza, the four-building complex, totaling 523,758 square feet, was acquired by Manhattan-based Capstone Equities. Capstone, led by principals Joshua Zamir and Avi Kollenscher, purchased the properties from The Treeline Companies for about $41 million this summer, according to real estate industry sources. The Treeline Companies acquired Franklin Avenue Plaza in 2007 from Cammeby’s International for about $99 million. 

    The complex includes the three-story 1205 Franklin Ave., the six-story 1225 Franklin Ave., the five-story 1305 Franklin Ave. And the six-story 1325 Franklin Ave. The four office buildings are about 88 percent occupied by a variety of financial and professional services firms, including Merrill Lynch, Stifel, Bessemer Trust, and ShelterPoint Insurance, according to a JLL statement. 

    Amenities at the Garden City office complex include a fitness center, conferencing facility, full-service café, and a dry cleaner. 

    “Franklin Avenue Plaza has a strong legacy as a cornerstone of the Garden City office landscape, and we are excited to build on that foundation at a time when the office market is rapidly evolving,” Zamir said in the statement. “We look forward to collaborating with JLL to support current tenants and welcome new businesses seeking inspiring, high-quality office space in a prime setting.” 

    The JLL team of Joe Lopresti, Kyle Crennan and Brian Weigold are leading the marketing efforts for Franklin Avenue Plaza. 

    “We are thrilled to be partnering with Capstone Equities to reintroduce such a prominent office complex to the market,” Lopresti said in the complex. “With a well-capitalized new owner in place, we will be able to deliver top-quality buildouts, refreshed common areas, and upgraded amenities for tenants. The stage is set for an exciting new chapter at Franklin Avenue Plaza, and we look forward to attracting and retaining leading businesses in the area.” 

    Most of the available office space at Franklin Avenue Plaza is being offered at $36 a square foot. 


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    David Winzelberg

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  • Banks buck downsizing trend, re-up for 300K sf in Irvine

    Banks buck downsizing trend, re-up for 300K sf in Irvine

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    Three banks have re-upped their office leases for a combined 300,000 square feet in Irvine, marking some of the larger new leases in Orange County.

    Pacific Premier Bancorp, JPMorgan Chase, Wells Fargo each recommitted to their offices, bucking a local trend of tenants seeking to downsize to offices smaller than 20,000 square feet, the Orange County Business Journal reported, citing CBRE and Cushman & Wakefield.

    All of the renewals came in the Irvine Business Complex, which sits within the John Wayne Airport-area submarket.

    Pacific Premier, based in the city, renewed a 115,400-square-foot office lease at its headquarters at 17901 Von Karman Avenue. The bank takes up half the 12-story tower, whose landlord was not disclosed.

    New York-based JPMorgan renewed 173,200 square feet of offices at 3 and 5 Park Plaza, owned by the Irvine Company. 

    Wells Fargo, based in San Francisco, renewed 53,000 square feet of offices at 2030 Main Street, countering the larger trend of what CEO Charles William Scharf dubbed a “lumpy” office market nationally.

    “In our commercial portfolios, losses continued to be driven by commercial real estate office properties, where we expect losses to remain lumpy,” Scharf said during a second quarter earnings call.

    “Fundamentals in the institutional owned office real estate market continued to deteriorate as lower appraisals reflect the weak leasing market in many large metropolitan areas across the country.”

    Orange County has been taking some of the lumps, with recent leasing relatively weak, according to the Business Journal.

    Businesses in the region “don’t need as much space as they once did,” according to a CoStar analysis of Orange County’s office market last quarter. 

    “Office tenants are more frequently leasing smaller-sized office suites in the area, and just a few leases for over 50,000 square feet of office space have been signed this year, a slowdown from the more than 10 inked last year and an average of 20 signed annually in the past decade,” Jesse Gundersheim, a researcher with CoStar, stated in the analysis. 

    Leasing activity for offices between 20,000 and 50,000 square feet has been slow,  with 30 such deals signed this year — down from the more than 50 such deals signed for both 2022 and 2023, he said.

    Year-to-date leasing volume for offices of 20,000 square feet or more made up 19 percent of all leasing activity — a “historical low.”

    Read more

    Owner-users snap up office deals for discount prices in OC


    Google Renews Office Lease for 200K sf in Irvine

    Google renews office lease for 200K sf in Irvine


    Office Leasing in Orange County Picks Up

    Orange County office leasing picks up steam


    At the same time, JLL found OC leasing volume rose 5 percent last third quarter, compared to the previous three-month period, with lease renewals dominating the market.

    This month, Mountain View-based Google renewed its lease for 196,200 square feet of offices at the two-building office campus at 19510 and 19520 Jamboree Road, in Irvine.

    — Dana Bartholomew

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    TRD Staff

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  • LA office leasing hits post-pandemic high, up 27% from a year ago

    LA office leasing hits post-pandemic high, up 27% from a year ago

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    Office leasing in Los Angeles, which withered during a pandemic shift to remote work, is on the rise — but so are the number of available workplaces.

    Office landlords across the city inked deals for 3.8 million square feet during the third quarter ending last month, the highest since the dawn of the pandemic four years ago, the Commercial Observer reported, citing an analysis by Savills.

    That’s a 27 percent boost in leasing activity year-over-year, and nearly hits the 4 million square feet of newly leased offices in the first quarter of 2020.

    At the same time, the rate of office availability in L.A. is still on the rise.

    Availability jumped 0.9 percent to 28.3 percent from the previous period, and 1.8 percent year-over-year.

    Average monthly asking rents for offices remained flat at $3.90 per square foot, though asking rents for Class A offices rose 1.7 percent year-over-year with a “flight to quality” in Century City and across Southern California. 

    The rise in leasing activity ignited cautious optimism that demand for offices is returning to L.A., even as office-using employment growth in the region, particularly in the tech and entertainment industries, has fallen over the past year, according to Savills.

    “Leasing activity will be very closely watched to see if the Los Angeles office market has turned the corner or if recovery is further away,” the report said.

    Notable office deals over the summer included a lease by Southern California Gas Company last month of 198,600 square feet at 350 South Grand Avenue, in which the company will leave its namesake Gas Company Tower at 555 West 5th Street. 

    Terms of the long-term lease with Mid-Wilshire-based CIM Group, owner of the building, were not disclosed.

    JPMorgan Chase also signed a 162,700-square-foot renewal and expansion lease at 2029 Century Park East in Century City, the top office submarket in Southern California, according to the Savills report. 

    Terms of the deal between the New York-based bank and the landlord, Houston-based Hines, were not disclosed.

    — Dana Bartholomew

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    SoCalGas to exit Gas Company Tower in LA for new digs on Bunker Hill


    Office Amenities Draw Workers Back to Offices

    Landlords want to fill offices, workers want amenities 


    Office Market May Have Found Its Bottom: Report

    Office market may have found its bottom: report


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    TRD Staff

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  • Manhattan Office Leasing Takes a Nosedive in January

    Manhattan Office Leasing Takes a Nosedive in January

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    Manhattan’s market has all but frozen over in January. 

    Office leasing activity plummeted for the month, thanks to lagging demand, with office availability at an all-time high for the second straight month. 

    Total activity for the month ended at 2.25 million square feet, barely half the volume from last January, and a fall of almost 40 percent from December. The data comes from Colliers’ latest Manhattan office leasing report, which covers Midtown, Midtown South, and Downtown. 

    The report shows the latest signs of a stubborn office market, where availability has stood pat at 17.9 percent for two months. Even in the busiest of months, the amount of office space coming onto the market has often outstripped leasing volume. But in January, leasing volume fell below the five-year monthly average of 2.35 million square feet. 

    The drop in leasing didn’t surprise Colliers’ Frank Wallach, the report’s author, who said January often brings a drop in leasing after tenants rush to sign leases in December. The fourth quarter of 2023 was the strongest period since mid-2022, paving the way for the slow start to this year. 

    One or two megaleases can make all the difference between a lackluster month and a solid one. But January saw no such megaleases, and only four leases over 100,000 square feet. 

    The biggest lease came courtesy of law firm King & Spalding, which signed a new lease for 175,000 square feet at Vornado Realty Trust’s 1290 Sixth Avenue. For comparison, there were at least four leases over 250,000 square feet in December, including one record-setting lease of over 765,000 square feet. 

    Other major deals include Intercontinental Exchange, Inc., which signed a new lease for 143,000 square feet at Fisher Brothers’ 1345 Sixth Avenue, and the Archdiocese of New York’s new lease for 142,00 square feet at the Feil Organization’s 488 Madison Avenue. 

    The sublet market stayed busy in January, with large blocks of space hitting the market and leaving it. 

    More than 400,000 square of sublet space hit the market at Rudin Management’s 1675 Broadway, while BXP’s 200 Fifth Avenue saw a 336,000-square-foot chunk become available for sublease. 

    Still, most of the damage done was recovered, as sublet space was either leased or taken off the market. Altogether, available sublet space increased by just 47,000 square feet for the month, and has actually decreased throughout the borough by 1.4 percent over the last year. 

    Office leasing continues to be a fractured market across Manhattan, with each neighborhood facing different demand. 

    Leasing in Midtown fell by almost half from December, at 1.34 million square feet leased. But that was enough to outdo its monthly average for the last five years. Midtown South had its worst leasing total in six months at 0.53 million square feet , while Downtown saw a modest decline from December to 0.39 million square feet. 

    Even within each neighborhood, demand can vary vastly from one avenue to the next, Wallach said. In Midtown, the average availability on both Sixth Avenue and Park Avenue sits around 11 to 12 percent. Third Avenue is closer to 20 percent, though that’s a stark improvement from the 25 percent availability rate in early 2023. 

    Typically, 10 percent availability is a healthy equilibrium for a market, Wallach added. 

    Asking rents ticked downward by a few cents for the month, to $74.64 per square foot annually, as the highest quality, most expensive space becomes harder to come by.

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    David Westenhaver

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  • Office Complex Worldwide Plaza’s Estimated Value Sinks $500M

    Office Complex Worldwide Plaza’s Estimated Value Sinks $500M

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    SL Green and RXR Realty’s Worldwide Plaza could find themselves in a world of hurt if two of its biggest tenants jump ship.

    Wall Street securities firm Evercore ISI recently reported an implied value for the Midtown Manhattan complex of $1.2 billion, down nearly a third from $1.7 billion in 2017, according to Crain’s. The estimated valuation breaks down to $600 per square foot.

    SL Green and RXR acquired a 49.9 percent interest in the property at the $1.7 billion valuation seven years ago. The majority interest is owned by New York REIT, which is in the process of liquidating.

    The 2 million-square-foot complex includes retail space, residential space and a 49-story office building. 

    Law firm Cravath Swaine & Moore, which occupies a third of the office space and pays roughly half the building’s rent, is set to decamp for Two Manhattan West in August. Japanese investment bank Nomura Holdings is also exploring a move from the property, where it occupies 40 percent of the rentable area.

    Cravath’s 600,000-square-foot space has been available for more than four years, according to Wharton Property Advisors’ Ruth Colp-Haber, who added it would take about $90 million to update the space for an incoming occupant.

    “If they can’t re-lease it and ultimately hand the keys back [to lenders], there’s not a lot of equity value,” Evercore analyst Steve Sakwa said.

    Worldwide Plaza backs a $940 million loan. The upcoming lease rollover resulted in the debt being watchlisted during the fall. The loan comes due in 2027, the same year Nomura can exercise an option to leave its lease six years early.

    New York REIT’s liquidation is creating its own confusion. A report last October from Kroll Bond Ratings said the real estate investment trust indicated it was looking to sell Worldwide Plaza, perhaps by April. A source familiar with the property, however, told Crain’s the building isn’t for sale.

    RXR, SL Green and New York REIT all did not comment to Crain’s about the Evercore ISI analysis.

    — Holden Walter-Warner

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    TRD Staff

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