THE YEAR IN COMMERCIAL REAL ESTATE

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Triple-Digit Boom
In the exclusive confines of the Plaza district, a handful of elite financial services firms spent 2013 inking triple-digit leases—those deals carrying rents in excess of $100 per square foot. Once rare, these deals have skyrocketed in those few buildings boasting the unique infrastructure requirements for the world’s top money managers. From Aby Rosen’s landmark Seagram Building to Sheldon Solow’s 9 West 57th Street, the triple-digit fraternity is an exclusive club for both landlord and tenant. Approximately 60 leases fell into the triple-digit category in 2013, the bulk of them signed during the second quarter, according to data from CompStak. Below, The Commercial Observer breaks down the key figures and shines some light on the most expensive deals of 2013.

10 Most Expensive Leases of 2013, by Rent
Och-Ziff Capital Management 9 West 57th Street Size: 63,200 square feet on the 39th and 40th floors Rent: low $200s per square foot Banco Itau 767 Fifth Avenue Size: 16,000 square feet on the 50th floor Rent: mid $190s per square foot Ruane Cunniff & Goldfarb 9 West 57th Street Size: 32,000 square feet on the 50th floor Rent: low $190s per square foot Fintech 375 Park Avenue Size: 6,375 square feet on the 38th floor Rent: low $160s per square foot Wellspring Capital Management 390 Park Avenue Size: 10,726 square feet on the fifth floor Rent: low $150s per square foot Snow Phipps 667 Madison Avenue Size: 14,250 square feet on the 17th and 18th floors Rent: low $150s per square foot Jordan/Zalaznick Advisors 9 West 57th Street Size: 12,000 square feet on the 33rd floor Rent: low $150s per square foot Saranac International Energy 390 Park Avenue Size: 10,726 square feet on the 14th floor Rent: mid $140s per square foot Ontario Teachers’ Pension Plan 375 Park Avenue Size: 2,953 square feet on the 26th floor Rent: low $140s per square foot
DERRICK DENT ILLUSTRATION

1

2

60

3

Approximate number of comps collected by CompStak in 2013 with rents of $100 or above

$

Average rent per square foot of CompStak’s triple-digit comps

123

4

$

Weighted average rent of triple-digit comps

127 13,561 square feet

5

6

Average transaction size of triple-digit comps

7

8

3
$

Number of tripledigit deals in the top 10 signed at 9 West 57th Street

3
$

Number of tripledigit deals in the top 10 signed at the Seagram Building

9

Approximate average rent per square foot of those three deals

180

Approximate average rent per square foot of those three deals

147

SR Capital 375 Park Avenue Size: 4,157 square feet on the 15th floor Rent: low $140s per square foot

10

32 | DECEMBER 17, 2013  | COMMERCIAL OBSERVER

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