ATCO Inks 3 Lease Expansions in Manhattan
Despite high office vacancy, the borough still has the highest average asking rate in the country.
ATCO Properties & Management has signed three lease renewals totaling 17,477 square feet across three of its office buildings in Midtown Manhattan. SimpleBet, Electra Information Systems and All Nippon Airways expanded their footprints in the borough.
Sports betting technology company SimpleBet extended its ninth-floor lease at the 12-story, 110,000-square-foot 373 Park Ave. S. Raise Commercial Real Estate Managing Director Jamie Katcher and Senior Advisor Henry Korzec brokered the agreement on behalf of the tenant, while Colliers Vice Chair Robert Tunis, Associate Kyle Berlinsky and Managing Director Joseph Mangiacotti represented the landlord. The asking rent was set for $62 per square foot. According to CommercialEdge, Aegis, LaunchSquad, Advanced Focus and RRU Research also have leases at the property.
Data acquisition and delivery service firm Electra Information Systems renewed its 4,494-square-foot commitment on the 14th floor within the neighboring 17-story, 228,000-square-foot 381 Park Ave. S. ATCO Co-President Hemmerdinger Goodman handled the lease signing in-house. The agreements did not involve any brokers representing the tenant and the asking rent was $66 per square foot. Electra joins the existing roster at the property, which includes EVOS, Valerio Architects, NYFF Events and Fleischman Salon, among others.
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All Nippon Airways will relocate on the 5th floor at 630 Third Ave. The Japanese airline signed a 7-year lease to occupy 4,251 square feet within the 252,000-square-foot building. Newmark Associate Director Brittany Silver and Managing Director Jonathan Franzel assisted the landlord, while JLL Senior Vice President Dan Santagata and Managing Director TJ Hochanadel handled the lease signing on behalf of the tenant. The asking rent was $65 per square foot.
In the second half of 2022, Slovenia’s consulate also doubled its commitment at ATCO’s 23-story tower.
Leasing in Manhattan remains robust despite high vacancy and rents
According to a recent CommercialEdge report, the Manhattan office market experienced the most rapid increase in vacancy rates among the Northeast markets, with a 2.6 percent year-over-year increase, to reach 15.4 percent in January. The same source reveals that Manhattan remains the market with the highest asking rates during last year, averaging at $75.74 per square foot. Despite this, leasing activity persisted in the borough.
Earlier this month, sovereign wealth fund Temasek International extended and expanded its lease agreement at RFR Realty’s Seagram Building in Midtown Manhattan. Last month, JEMB Realty Corp. executed three leases totaling 32,000 square feet at the 720,000-square-foot 75 Broad St. in Downtown. Rudin Management Co. also signed a 59,550-square-foot, 15-year lease at 80 Pine St., within the Financial District.
