Paramount Group “not seeing” issues in NYC office market REIT cites “stability” of Midtown market, discusses upcoming large-block vacancies
UPDATED, 4:50 p.m., May 9: Paramount Group’s outlook for the New York City office market is “unchanged,” despite reports of slipping asking rents and a slowdown in leasing velocity. On a first-quarter earnings call on Friday, the real estate investment trust said demand for office space in the Midtown market remained steady.
The office REIT leased nearly 155,000 square feet of office space in the first quarter across its portfolio, which includes properties in New York, Washington, D.C. and San Francisco. The New York City market accounted for the bulk of those deals, with Paramount signing 97,000 square feet of leases in the city – at a weighted average initial rent of just over $81 per square foot to push its New York portfolio occupancy to 95.7 percent.
Among those deals was a 52,555-square-foot renewal with law firm Vedder Price at Paramount’s 48-story, 2.6 million-square-foot office tower at 1633 Broadway in Midtown. Chicago-based Vedder Price signed a 11-year deal to relocate from the 47th floor of the property, where its lease was due to expire next year, to the 31st floor – where the recently-defunct law firm Dickstein Shapiro entered into a $10.9 million lease termination agreement with Paramount in February.
While Paramount did not directly name Vedder Price and Dickstein Shapiro in either its earnings release or earnings call, The Real Deal verified both parties via outside sources.
The REIT re-leased Dickstein Shapiro’s space to Vedder Price at an initial cash rent of $80 per square foot. Paramount chair, president and CEO Albert Behler lauded both the quick turnaround in re-leasing the space, as well as the company’s ability to keep Vedder Price which “had a lease out” at another Midtown office building at the time – at 1633 Broadway.
Paramount is “not seeing 阿拉爱上海同城