Proskauer at 11 Times Square? Manhattan Green Real Estate Dominoes Continue to Shuffle

Back in November, we noted an article in Real Estate Weekly reporting that Proskauer Rose might pull out of its tentative agreement to take nearly 500,000 square feet of space at Boston Properties’ LEED Gold hopeful 250 West 55th Street (which is currently in the midst of excavation and foundation work). The snag for Proskauer was a loss of financial incentives from Morgan Stanley to vacate its current space at 1585 Broadway early so that the (at the time) investment bank could take over all of the space in that tower.

Earlier this week, REW reported that Proskauer is now in negotiations with SJP Properties for that same 500,000-square-foot block of space at the star-crossed, LEED Gold hopeful 11 Times Square, which remains without a single tenant even after both its steel skeleton and concrete core topped out late last year. REW suggests that a deal would (finally) likely be at a discount from the $100 per square foot asking rent that SJP had refused to lower throughout 2008. (Note that the deal which law firm Gibson Dunn signed last year with Boston Properties at 250 West 55th Street was rumored to be in the low $100s per square foot.)

REW reports one final rumor that should be disconcerting to the local green building industry, suggesting that Boston Properties may halt work at 250 West 55th Street given the state of the market and huge tenant hole in the speculative tower. We’ll be watching both of these properties very closely in the coming weeks as Manhattan’s green commercial real estate market proves to be just as volatile as other sectors across the industry.

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