Mitsui Fudosan Inks 200K SF Lease in Midtown Manhattan
Mitsui Fudosan America quietly secured one of Manhattan’s largest office leases of the third quarter.
Law firm Morgan, Lewis & Bockius signed a deal to take 205,000 square feet at 1251 Sixth Avenue in Midtown, the Commercial Observer reported. The deal was initially disclosed in Colliers’ quarterly report.
The tenant is expected to relocate from 101 Park Avenue near Grand Central Terminal, according to a Savills report, but it’s unclear when that move will take place. Other details about the deal, including asking rent and length, were not disclosed. The tenant did not respond to a request for comment.
The average asking rent for office space in the neighborhood during the third quarter was $80.71 per square foot. Other tenants at the 54-story building include financial advisory firm Solomon Partners, which agreed to lease 70,000 square feet there three years ago, as well as Lowenstein Sandler, Akerman, Berenberg Capital Markets and TWC Group.
Manhattan’s office market is riding a major high heading into the final quarter of the year.
Class A average asking rents rose to $85.45 per square foot in the third quarter, surpassing pre-pandemic levels and reaching an all-time high, according to Colliers. Tenants signed deals for more than 10 million square feet in the third quarter, the fourth consecutive quarter with more than 10 million square feet of leasing, a feat last achieved in 2002, per Colliers.
Midtown’s available supply, meanwhile, returned to its pre-pandemic level with just under 28 million square feet of available space. And Midtown South had its strongest third quarter on record, driven largely by technology, advertising, media and information (TAMI) tenants.
Manhattan’s availability rate fell 0.6 percentage points during the quarter to 12.4 percent, the 10th quarter in a row that the rate either dropped or held steady.
Law firm Proskauer Rose inked the largest lease of the quarter, a 478,000-square-foot renewal and expansion at SJP Properties’ 11 Times Square.
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