What's the State of the Leasing Art in Midtown South?

A must read for Midtown South commercial fans, just posted by Crain's New York Business: the Kaufman Organization has announced two tech companies are moving into its acquisition of a year ago, 27 W. 24th, and the rents are higher than the developer/manager expected.

The article says that the $59 per square foot deals--for a total of about 7,800 square feet-- are "a record price for the space at the property."

Furthermore, the article notes that CBRE datea indicates that "this is just a few dollars off the roughly $60 per square foot average asking rent in midtown south, which is also a new record for the area."

The article details how Kaufman paid $55.5 million for the 115,000-square-foot office building about a year ago, which was above the mid-decade real estate boom, and then added $5.5 million to renovate, which attracted the lessees.

"Now," reports Crain's, "the Kaufman Organization is collecting dividends on its investment."

"When we purchased 27 W. 24th St., we didn't project we'd get rents this high," Grant Greenspan, a Kaufman principal told the magazine. "These deals exceeded our expectations."

Full details at Crain's here.

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