It looks like history has been made in New York City's commercial real estate industry. A family office has signed a lease at 9 West 57th Street in Midtown Manhattan, paying $327.50 per rentable square foot.
Landlord Soloviev Group reports that it "believes" that this price was the largest ever posted in NYC's commercial marketplace history, with the previous record coming in at $320 per rentable square foot.
Stefan Soloviev, chairman of the conglomerate, simply laid it out in a statement: "The price speaks for itself."
The unnamed family office will operate 5,063 square feet of space on the 50th floor's northwest corner.
CBRE represented Soloviev on the deal, led by the brokerage team of Alex Leopold, Tara Rhodes, Howard Fiddle, John P. Maher and Gregg Rothkin.
The likely record-breaking deal adds to the major tenants that 9 West has attracted recently. For example, last year Soloviev signed the U.S. Soccer Federation, Hess Group LLC, Beaconlight Capital LLC and Platinum Equity Advisors LLC to leases. The latter three accounted for more than 40,000 square feet of space at the 50-story office building, with rents all exceeding $200 per square foot, according to Soloviev.
The 1.6 million square foot property gets its attraction from its recent renovations to the lobby, building system technology and elevator. Additionally, Soloviev added a 20,000 square foot amenity floor that features a coffee bar, executive dining, modern conferencing, meeting space and a hospitality section.
Overall, February marked a slowdown for office in Manhattan, with leasing declining by 39.5 percent from January and 29.7 percent year-over-year. However, rents continued to grow, rising by 0.3 percent to $77.22 per square foot, marking the ninth straight month of gains. Rents are now averaging the highest level seen since August 2020.
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