Savanna Signs 60 KSF New Leases on 40th Street in Manhattan
- Jul 27, 2011
July 27, 2011
By Nicholas Ziegler, News Editor
According to numerous research reports — and the volume of sales — the Midtown market in Manhattan is still moving properties at a brisk pace. On Tuesday, Savanna announced the signing of more than 60,000 square feet of new office leases in its building at 104 West 40th Street, just next to Bryant Park, representing nearly 30 percent of the building’s 210,000-square-foot capacity.
One of the new tenants, TKP New York, Inc., is a Japan-based firm that signed a 10-year lease for just shy of 32,000 square feet as well as a private entrance on West 39th Street. The company delivers state-of-the-art conference and meeting facilities. The other signed tenant, Daytop Village Foundation, is relocating from its current office one block down West 40th Street and signed for slightly less than 30,000 square feet.
Leasing and marketing for the building was led by CB Richard Ellis Inc., who was pleased to find multiple tenants for the class A property. “With a prime Midtown location adjacent to Bryant Park and access to major transportation, 104 West 40th Street satisfies TKP’s location requirements for its first center in Manhattan,” Joseph Mangiacotti, first vice president of CBRE, said.
According to a Cushman & Wakefield report, the Manhattan office market continues to heat up from its already-brisk pace. In the first six months of 2011, 17.6 million square feet of space was signed, marking the highest two-quarter total in more than a decade. Year-over-year, leasing activity is up 40 percent from the 12.6 million square feet signed in the first half of 2010. A Jones Lang LaSalle report also confirmed the flurry of activity, noting that rents in Midtown trophy properties have risen by more than 16 percent since the market’s bottom in 2010, reaching $83.17 per square foot.
“We are thrilled about the new leases for TKP and Daytop’s New York offices,” said Nicholas Bienstock, a managing partner of Savanna. “These leases are evidence of the attractiveness of the building and justify our decision to make a significant investment in it.”