TPG Capital has inked a deal to move into The Spiral office building skyscraper at 66 Hudson Blvd. in Manhattan. Signing for 301,276 square feet across eight floors, the deal marks the second-largest relocation in Manhattan in October, according to The New York Post. The largest was Bloomberg’s lease for 924,876 square feet at 919 Third Ave.

This puts The Spiral, which has 2.8 million square feet of total office space, at 94% leased. That’s a solid achievement for a property that opened less than two years ago. It also showcases the appeal of office space in Hudson Yards, which was once dubbed “Far West Midtown.” Other tenants at The Spiral include, among others, Turner Construction and HSBC, both of which list the address as their U.S. headquarters.

The building’s name comes from its distinctive, ziggurat silhouette and stepped terraces designed by the Bjarke Ingels Group (BIG). Inside, the property offers amenities like the Zo Clubhouse, studio spaces, dining options, a bicycle room and EV parking.

For TPG, this move from 888 Seventh Ave. and 245 Park Ave. will make for a moderate expansion totaling 20,000 square feet for the global asset management firm.

Manhattan Office Outlook: Occupancy Up, Sales Prices Lag as Construction Slows

The Manhattan office market has seen an improvement in occupancy: The latest national report from CommercialEdge notes a decrease in the vacancy rate by 90 basis points year-over-year to 16.8% now.

Manhattan also remains the most expensive office market in the country with an average asking rent of $67.93 per square foot. Meanwhile, office space transactions have held steady with $2.7 billion in office sales recorded through the end of September to top all other markets.

However, when it comes to office sale prices, Manhattan no longer leads the pack. Instead, it now ranks fourth behind Austin, Texas ($379 per square foot); Los Angeles ($345); and Miami ($335). Office properties also continue to change hands at discounted rates. For example, the September sale of a 270,000-square-foot Midtown East building, including retail space, for $65 million was just one-third of its $180 million valuation in 2019.

Construction has also slowed with the pipeline dropping from 6.5 million square feet a year ago to just 2.6 million square feet currently under construction.