In a deal that is probably an accurate paradigm of the current state of the New York City commercial real estate market (that happens to be taking place in a green building), stock trading company Instinet appears to be close to taking 100,000 square feet on the lowest three floors of 1095 Sixth Avenue for approximately $70 per square foot. The firm, which is currently located at 3 Times Square, where its lease expires in 2011, is taking space that was leased back in 2007 by a separate real estate and asset management firm called Centerline Capital Holdings at $125 per square foot (rising to $140 over the lifetime of the deal).
Centerline terminated its lease earlier this year after spending close to $15 million (around $150 per square foot) building out the space, so Instinet will be taking that effort over for free in addition to receiving an unspecified amount of free rent and allowances for any modifications or additional work that may be necessary to customize the space to its needs. According to Real Estate Weekly, that package might be in the neighborhood of a year of free rent and $50 to $60 per square foot of build out costs.
You may recall reading about 1095 Sixth Avenue in the very early days of the recession, when one of its tenants, the iStar Financial Group, announced that it would sublease nearly 100,000 square feet of space that it had leased on the tower’s upper floors; to date, it has been unsuccessful. 1095 Sixth Avenue is, unfortunately, a relic of a distant market, notwithstanding its significant green upgrades that attracted many high-profile and deep-pocketed tenants to it in the first place. We wrote about the building a few times here at gbNYC, noting owner Blackstone Group’s decision not to pursue a third-party rating for its green design features while LEED Platinum-hopeful Bank of America Tower was rising across the street.