The Latest on Manhattan Office Conversions: A New Era for NYC Real Estate
The landscape of Manhattan real estate is undergoing a significant transformation, driven by the evolving needs of tenants and the persistent demand for housing. Office conversions are at the forefront of this change, with millions of square feet being repurposed for residential, hotel, and self-storage use.
Here’s a snapshot of the current situation:
- Active Conversions: Currently, approximately 11.3 million square feet of Manhattan office space is actively being converted or is in various stages of planning for conversion.
- Potential Conversions: An additional 9.7 million square feet of office space is rumored to be a potential candidate for conversion.
➡️ For insights into how these conversions impact the broader NYC market, check out The Strength of Manhattan’s “Better Buildings” in the Midtown Core.
Key Conversion Projects:
Buildings Underway:
- 25 Water Street: 1,100,241 sq ft
- 235 East 42nd Street: 672,462 sq ft
- 55 Broad Street: 406,025 sq ft
- 330 West 42nd Street: 381,572 sq ft
- 219 East 42nd Street: 350,000 sq ft
- Total: 2,920,301 sq ft
Planned/Announced Conversions:
- 5 Times Square: 1,073,705 sq ft
- 111 Wall Street: 1,038,723 sq ft
- 80 Pine Street: 761,227 sq ft
- 750 Third Avenue: 761,057 sq ft
- 222 Broadway: 709,759 sq ft
- 77 Water Street: 546,803 sq ft
- 625 Madison Avenue: 537,000 sq ft
- 623 Fifth Avenue: 350,878 sq ft
- 50 West 23rd Street: 320,000 sq ft
- 767 Third Avenue: 296,000 sq ft
- 101 Franklin Street: 239,310 sq ft
- 100 Wall Street: 238,652 sq ft
- 655 Madison Avenue: 233,323 sq ft
- 175 Fifth Avenue: 204,178 sq ft
- 10 Rockefeller Center: 179,805 sq ft
- 419 Park Avenue South: 153,614 sq ft
- 95 Madison Avenue: 144,000 sq ft
- 830 Third Avenue: 131,000 sq ft
- 2 Wall Street: 124,634 sq ft
- 17 Battery Place South: 118,876 sq ft
- 650 First Avenue: 98,300 sq ft
- 245 West 55th Street: 57,420 sq ft
- 152 West 36th Street: 51,200 sq ft
- 711 Fifth Avenue: 19,331 sq ft
- Total: 8,388,795 sq ft
➡️ For examples of major leasing transactions that influence conversion trends, see The 15 Largest NYC Leasing Transactions of 2024.
The post-COVID era has highlighted the obsolescence of many older office properties, which no longer meet the demands of modern tenants. Coupled with a growing preference for core midtown locations, this has led to an oversupply of office space in areas like downtown.
➡️ For tenants navigating these shifts and considering relocation or renewal strategies, explore Blend and Extend.
This shift presents a valuable opportunity for New York City to adapt and optimize its real estate. Repurposing underutilized office buildings addresses the city’s critical housing shortage while also tightening the office market, fostering a healthier balance. As New York City evolves, these conversions will contribute to a stronger and more efficient urban landscape.
➡️ To understand how nonprofits can benefit from these changes in the commercial real estate market, read Things for Nonprofits to Consider When Leasing Office Space.
For detailed insights into the commercial real estate market, please feel free to reach out.
Paul Walker 212-984-7117 Paul.Walker@cbre.com”