New York’s workplace market has a brand new high-water mark — the newest signal of the rising divide between struggling, outdated buildings and Manhattan’s high-demand towers.
Stefan Soloviev’s Soloviev Group signed a lease at 9 West 57th Street at $327.50 per sq. foot. That surpasses the earlier report of $320 per foot, establishing a brand new excessive bar as these excessive triple-figure offers develop into extra frequent.
“The value speaks for itself,” Soloviev stated.
The tenant is a non-public worldwide household workplace, Soloviev stated. The ten-year deal covers 5,063 sq. ft on the northwest nook of 9 West’s fiftieth flooring, which affords the perfect views of Central Park.
The earlier record-holder was SL Inexperienced’s One Vanderbilt, which in 2022 signed a 9,871 square-foot deal on its highest workplace flooring with the Canadian waste administration firm GFL Environmental.
Rents above $300 a foot are nonetheless extraordinarily uncommon a decade after L&L Holdings first broke that mark in 2015 when Ken Griffin’s Citadel paid that value for the penthouse portion of its 200,000-square-foot house at 425 Park Avenue. However they’re changing into extra frequent.
Manhattan recorded one such lease final 12 months when SL Inexperienced signed the infrastructure service supplier Kyndryl to a $305 per sq. foot deal for six,300 sq. ft at One Vanderbilt.
However the market might be headed extra towards that route. Offers for earlier value obstacles that have been as soon as regarded as distinctive — resembling $100 and $200 a foot — are actually rather more commonplace.
New York noticed a report 313 leases beginning at $100 per sq. foot or extra in 2025, up from 2024’s report of 212 leases, in line with JLL’s annual report of top-of-market offers. There have been 28 offers at $200 per sq. foot or greater, together with six offers above $250.
Soloviev signed three of these $200-plus offers at 9 West 57th Road.
Manhattan’s common asking hire grew to $76 per sq. foot on the finish of 2025, its highest stage in 5 years however nonetheless under the height set on the peak of the market in 2019.
However New York continues to be within the midst of a Ok-shaped restoration, the place a flight to high quality has benefitted buildings already performing properly and deepened the issues for struggling ones.
Nationwide, the CMBS workplace delinquency charge was a record-high 12.34 % in January, in line with Trepp. That was pushed by two very giant loans backing New York workplace buildings: Worldwide Plaza and One New York Plaza.
A CBRE group led by Howard Fiddle represented Soloviev within the 9 West deal. Newmark’s Howard Hersch negotiated on behalf of the tenant.
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