BXP Lands New Tenant at Manhattan Property
Ziff Davis has signed a 23,038-square-foot lease at 360 Park Ave. S., a 20-story, 440,000-square-foot, Class A office building in Manhattan, N.Y., owned by BXP. CBRE led the lease negotiations on behalf of the landlord.
Ziff Davis provides digital media and internet services and will relocate its corporate offices from 114 Fifth Ave., occupying the 17th floor at 360 PAS.
BXP entered an agreement to purchase the 1913-built office asset in 2021 for $300 million. Initially, BXP’s stake was at 42 percent, however, earlier this year the company acquired the Canadian Pension Plan Investment Board’s 29 percent share for just $1. Following its exit, the pension fund was released from $46 million in future funding, as well as the $5 million annual interest payments stemming from the BXP-assumed $220 million mortgage, according to Crain’s New York Business.
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Subsequent to the acquisition, BXP earmarked $100 million in capital expenditures. The overhaul efforts of the vintage office property included the reimagining of the ground floor which now features eateries managed by Chef James Kent, an owner of multiple Michelin-starred restaurants. Furthermore, a garden-level amenity center encompassing conference- and work-lounge areas, as well as a tenant-only roof deck with bar and upgrades to the building’s elevator systems, among other additions, are also available.
The office property encompasses 23,038-square-foot floor plates with 13- to 17-foot ceiling heights. Moreover, 10 elevators serve every floor while 19 stories have options for multi-floor connections. Stories 17 through 20 are fully leased. Iconiq Capital was the first office tenant to sign a lease following the building’s overhaul.
Located in Midtown Manhattan, 360 PAS is within walking distance of Madison Square Park and The Empire State Building, as well as the Flatiron Building and Worth Square. Numerous upscale dining options and transit stops are also within walking distance.
CBRE Vice Chairman Peter Turchin and Executive Vice President Gregg Rothkin alongside Senior Vice Presidents Ross Zimbalist and Arkady Smolyansky, as well as Honorary Vice President Hayden Pascal and Senior Associate Trevor Larkin, represented the landlord in the lease negotiations.
Manhattan office vacancy increases, listing rates decline
As of April, Manhattan’s average office listing rate declined by 5.8 percent year-over-year, dropping to $69.72 per square foot—still nearly double the national average of $37.66 for the same period, according to a recent CommercialEdge report.
Increasing by 80 basis points year-over-year as of April, Manhattan’s office vacancy rate landed at 17.6 percent, outperforming the national average of 18.3 percent, which also increased by 160 basis points during the same interval, the report reveals.
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