NewsCred, a digital media company that provides content marketing and online news syndication, recently leased the entire pre-built sixth floor at 386 Park Avenue South. The 20-story, 260,000-square-foot, Class A, neo-gothic tower dates from 1927 and recently completed a new state-of-the-art lobby, expanded its entranceway, and underwent a capital improvement program which will include a LEED-EB: OM application to USGBC. NewsCred will relocate sometime in the second quarter of 2014 from its current space at 27 West 24th Street.
Commercial leasing activity in Midtown South continues to be furious, giving landlords and owners good reason to upgrade building stock and, in some cases, pursue third-party certification. Indeed, third quarter 2013 Midtown South leasing activity reports from various firms like Cushman & Wakefield and Cassidy Turley indicated that average asking rents have topped $60 for the first time in the submarket’s history. And, according to the latter, over 35 percent of Midtown South buildings are completely leased (compared with 23 percent in Midtown and 25 percent Downtown, though of course the building stock in those submarkets is predominantly high-rise). So it’s not surprising that the overall vacancy rate in Midtown South remains low – just 8.7 percent (though Cassidy Turley did note some upward movement thanks to 51 Astor Place’s 300,000+ square feet coming to market).
“Given the strength of Manhattan’s Silicon Alley, our high-end pre-builts have been extremely appealing to new media and creative and technology-focused users that want to be in close proximity to their peers in this dynamic submarket,” William Macklowe told GlobeSt.com. His eponymous firm bought the tower for $110 million last year with a 55 percent vacancy rate and is now repositioning it specifically for tech, media, and other creative industry tenants. Asking rents at 386 Park Avenue South range from $55 to $72 per square foot and NewsCred’s deal is for 8 years in the low $50s (according to CompStak). Other tenants at 386 Park Avenue South include Profero and Impact Republic.