The office-to-resi boom is helping Manhattan’s commercial leasing market rebound. The latest example is global sustainable development consultancy Arup’s upcoming relocation.
Union Investment signed the consultant company to a lease just shy of 100,000 square feet at 140 Broadway in the Financial District, the New York Business Journal reported. Arup will be relocating from 77 Water Street; it’s unclear how much space Arup occupied there in its decade of tenancy.
Financial teams of the 16-and-a-half year lease were not disclosed. Arup will occupy space between the 17th and 20th floors of 140 Broadway.
Colliers and LegacyNY brokered the lease.
Arup, which has nearly 100 offices around the globe, needed a place to go as the Vanbarton Group embarked on a conversion of 77 Water Street. A few months ago, Vanbarton landed a $280 million loan from Adi Chugh’s TYKO Capital for the acquisition and construction of the residential redevelopment.
Vanbarton purchased the property from Sage Realty for $95.5 million. The conversion is expected to yield as many as 600 residential units.
Any six-figure lease is a positive development for Manhattan’s office market, but the Union Investment still has plenty of space to fill at 140 Broadway. There’s still 300,000 square feet available at the 51-story, 1.25-million-square-foot property,Â
Last year, Union Investment and Nuveen Real Estate sold a recently renovated retail condominium at 636 Sixth Avenue. Sources told The Real Deal that the buyer was the Hotel and Gaming Trades Council and the building went for more than $70 million.
Manhattan office leasing volume hit 12.2 million square feet in the first quarter, the highest level of activity since the fourth quarter of 2019, according to Savills. Availability tightened too, especially in Class A buildings: the overall availability rate was 17.7 percent, down from 20 percent a year ago.
— Holden Walter-Warner
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Manhattan office leasing is back, babyÂ
