Stahl Organization's 277 Park Ave. secures 175,000 sq ft of new leases, reaching 98% occupancy, showcasing Park Avenue's resilience in the office market. (Google Maps)
Park Avenue landlords are celebrating recent developments following our previous report indicating that Sixth Avenue had marginally surpassed Park Avenue in terms of available space percentage.
The Stahl Organization, located at 277 Park Ave. between East 47th and 48th streets, has proudly announced securing 175,000 square feet of new and expanded leases within the past six months, effectively elevating the occupancy of the 1.85 million square-foot tower to an impressive 98%.
Among the notable transactions include a 50,000 square-foot new lease for Sumitomo Corporation of the Americas, a 50,000 square-foot expansion by Sumitomo Mitsui Banking Corporation, adding to its existing 266,000 square feet, and a lease of 47,000 square feet for Arsenal Capital Management. Additionally, smaller leases were inked by ERM Engineering & Consulting, Ontario Teachers Pension Plan, and an undisclosed international bank.
Representing Stahl in all these transactions were Cushman & Wakefield’s Mark P. Boisi, Bryan Boisi, and Stephen Bellwood, highlighting Park Avenue's sustained momentum in a fluctuating office market.
Despite both Park and Sixth Avenue boasting relatively low availability rates of around 11% for their new and mid-20th Century towers, Manhattan's overall office space availability stands at 20%, reaching as high as 30% in certain districts such as Wall Street.
The success story at 277 Park Avenue can be attributed significantly to the $120 million investment made to revamp the property, originally housing Chemical Bank since 1964. Major upgrades include a redesigned Park Avenue lobby featuring a 30-foot ceiling, an enhanced Lexington side lobby, a ground-floor fitness center for tenants, and dining options curated by esteemed chef David Burke. Mark P. Boisi emphasized, "It’s the whole package that tenants anticipate."
Asking rents at 277 Park Avenue range from $100 to $120 per square foot, with JP Morgan Chase standing as the largest tenant currently occupying the space.
