Office conversions to apartments are incorporating the country, as my colleague Emily Davis reported on Thursday.
According to the CBre Group Data, 23.3 million square meters in 58 largest US markets will be converted or destroyed by the end of 2025, against 12.7 million square meters of new office construction.
But in the Big Apple, the gap between the creation of newcomers and the lost officials in the conversion is even more star, the control of real estate was found.
A different report of CBre said that if any conversion to New York City “is currently being developed, proposed and rumored since Q4 2024” would end, it would remove about 16.5 million square meters from Manhattan General Inventory – a reduction of 3.9%.
The phenomenon makes the office market look stronger by reducing vacancy levels. News is good news for the owners of outdated buildings that can afford the high costs of conversion. News is bad news for tenants as reduced supply means higher rents in general.
But our survey of the situation clearly shows which trend has momentum.
The conversion tsunami emigrated from the Wall Street area to the Swamp Midtown.
Construction will start this year in 5 Times Square, which RXR, SL Green and Apollo Global Management will be transformed mainly into 1,250 rental apartments, a project facilitated by city zoning changes. Kulla-one of the four bright bed projects that grew up 25 years ago and defined the “new Times” Square-once at home for Ernst & Young, but is now mostly empty.
Metro Loft developers and real estate investors David Werner are going full steam in turning the former Pfizer headquarters into Avenue Third Avenue and Eastern 42nd road to 1,602 apartments.
In the city center, Real Estate GFP and Metro Loft are setting ending touches on 25 Water St., where tenants have begun to move to 1,230 apartments for rent.
These and many other conversions have been completed, developing or decided to start endlessly.
In comparison, a little precious is developing in the new office construction.
The only secure “go” on our radar is the 70 Hudson Hudson -related enterprises, a 1,1 million square pedestrian who seems a sure thing with Deloitte signed as the anchor tenant.
Other planned or dreamy office projects fall between “no yet”, “some days” and “if sometimes”.
BXP, once Boston Properties, is stuck in neutral at 343 Madison Ave., where he wants to build a 950,000 -square -foot tower. No tenant has been signed and work has not yet begun.
Until then, BXP is building a new Grand Central Terminal entrance portal.
A long -envied project Boulevard 3 Hudson from BXP and Moinian is not moving forward, nor; An 80 million dollars loan that BXP put into the joint venture is in default and they are looking for new funds, Business reported.
The 1.8 million -square -foot tower from Vortado, Rudin and Ken Griffin is still in the country’s country review and would not end for years in any case.
As for the superstall known as 175 Park Ave. which will include the Grand Hyatt hotel website at the East 42nd St., RXR and TF Cornerstone are demanding $ 4.84 billion in federal loans to finance the project.
Cbre in a particular study found that recent and continuous conversions removed 15.5 million square meters of official inventory – not offset by distance of less than 2.5 million square meters of new officials.
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