Less than a year after taking more than 50,000 square feet at 919 Third Avenue, the state is ready for more at the Midtown Manhattan building.
The state’s Office of General Services — the manager of New York’s owned real estate — signed a 15-year deal for another 66,000 square feet at the SL Green property, the Commercial Observer reported. That brings the state’s footprint at the tower to more than 117,000 square feet.
The asking rent on the expansion, which covers the building’s top two floors, was $85 per square foot. A CBRE team including Stephen Siegel, Liz Lash and Peter Larkin represented the tenant, while another team from the brokerage including Robert Alexander, Ryan Alexander and Emily Chabrier represented the landlord.
With the expansion, the 1.5 million-square-foot, 47-story office property is fully occupied.
“Leasing velocity on Third Avenue has significantly increased this year, resulting in a notable shortage of large, high-quality availability,” SL Green executive vice president Steven Durels said in a statement.
In November, the New York State Executive Chamber — or the Office of the Governor — signed a seven-year lease for 53,000 square feet on the building’s 40th and 45th floors. The space was set to be used as Governor Kathy Hochul’s personal office, as well as a press office and working space for her staff.
The Office of General Services explored potential leases at 40 buildings, touring 20 of them before picking 919 Third Avenue. At the time of the lease, it was said to be negotiating for more space, the result of which appears to be the latest deal.
Other tenants at the building include law firm Schulte, Roth & Zabel; law firm Mintz, Levin, Cohn, Ferris, Glovsky and Popeo; and Bloomberg.
In the third quarter, tenants in Manhattan leased 9.4 million square feet, a 2 percent jump from the second quarter and almost 27 percent higher than the five-year quarterly average, according to a Colliers report. Leasing volume surpassed 30 million square feet for the full year, surging past pre-pandemic levels and representing the strongest period of year-to-date demand since 2002.
— Holden Walter-Warner
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