C&W Retains Leasing Assignment at NYC’s 180 Maiden Lane
- Feb 03, 2015
The previous owners of 180 Maiden Lane, a 1.2 million-square-foot tower in Lower Manhattan, had faith in Cushman & Wakefield and so does the new ownership. The commercial real estate services firm will stay on to oversee leasing at the property, which features 800,000 square feet of vacant space, on behalf of new owners Clarion Partners and MHP Real Estate Services.
It wasn’t just a matter of convenience. Clarion and MHP could have had their pick of leasing groups, but clearly felt the firm in place was the best firm for the job. “Our team is uniquely qualified to lease this asset for many reasons. Cushman & Wakefield is steeped in Downtown market intelligence and history, and we have an intimate knowledge of 180 Maiden Lane’s extraordinary attributes,” Tara Stacom, executive vice chairman with Cushman & Wakefield, told Commercial Property Executive.
The 41-story tower at 180 Maiden Lane has had its place on the Lower Manhattan skyline since its opening in the 1980s. Clarion and MHP completed the $470 million purchase of the property from The Moinian Group and SL Green Realty Corp. in January, and now a $28 million capital improvement and renovation program is underway at the LEED-certified building. Upgrade notwithstanding, the building already offers, as Stacom described, “Many of the benefits associated with new construction.”
Given 180 Maiden’s existing coveted features and the benefits that will come with the upgrade, Cushman & Wakefield is confident about lease-up at the property. The building is fit for a large corporate tenant, but the technology, advertising, media and information sector is also high on the team’s target list.
“This building offers creative TAMI tenants a unique environment, unlike most Downtown assets,” Stacom said. “It’s undergoing an extensive upgrade to its public space that will become a gathering place for either planned or impromptu off-site meetings, or for use as a venue for company events with or without clients.” She also points to the property’s conference facilities, cafeteria and gym as a draw for office users eager to attract and retain talent.
And it appears that the timing may be just right for filling up a soon-to-be comprehensively renovated office tower.
“The Downtown market had its best year in history in 2014 with total new leasing of 6.7 million square feet as more and more tenants flocked to this affordable, walkable business district,” Stacom said.The numbers tell a vibrant story; the downtown vacancy rate plummeted from 12.3 percent at the end of 2013 to 9.7 percent at the close of 2014. “This decline occurred despite the addition of One World Trade Center to the Downtown inventory,” she added.
“TAMI tenants stood out, accounting for 29.5 percent of total leasing, as affordable space in Midtown South became harder to find,” Stacom concluded. “The second-largest industry was financial services at 17.1 percent. We expect to see more of the same in 2015. The market will remain robust as it benefits from continuing development at the World Trade Center site, its proximity to both Midtown South and Brooklyn, and its affordability.”