Uptick in NYC Office Market Seen in Large Lease, Fed Report

A U.S. Federal Reserve Beige Book report on the second district of New York (which includes New York City, Westchester and Fairfield counties, Rochester, and other metro areas in upstate New York) showed that commercial real estate markets remained steady in the first quarter of 2012—demonstrating increased loan demand and the most widespread declines in delinquency rates in several years, particularly in the New York City office market, where rents continue to rise.

Among several recent large leases in the Big Apple, New York City-based REIT SL Green Realty Corp. announced that publishing company Random House, Inc. has signed a 361,044 square-foot lease renewal agreement at its midtown Broadway location, extending its occupancy at the property through mid-2023. Random House will continue to occupy the second to 13th floors for its corporate headquarters. The company has been located at the 50-story building since the property was developed in 2003. Real estate experts said that a lease renewal from a company like Random House confirms the ongoing strength in demand for midtown buildings from a wide range of businesses.