URGENT UPDATE: Landlords along Sixth Avenue are reaping the rewards of a massive investment spree, with over $5 billion spent on upgrades in just three years. The result? A staggering 3.6 million square feet leased in the past year alone, according to the latest data from CBRE.
This boost in leasing activity comes as RXR’s 1211 Sixth Avenue, located between West 47th and 48th Streets, emerges as a key player. Major tenants such as News Corp’s Dow Jones, New York Post, and Fox News occupy a combined 1.2 million square feet in the building, which is part of a larger 2 million square-foot tower also housing Disney and Wells Fargo.
The demand for premium office spaces on Sixth Avenue has led to a drop in availability in the Sixth Avenue/Rockefeller Center submarket, now below 10%, down from 15% in the same quarter last year. This surge in leasing solidifies Sixth Avenue’s position as a strong competitor, second only to Park Avenue.
However, the upcoming exit of law firm Ropes & Gray from 1211 Sixth, moving to RXR’s 1285 Sixth Avenue in 2028, will create a rare vacancy of 700,000 square feet. In anticipation, RXR is investing $367 million into transforming the 1970s-era tower to stay competitive.
New enhancements underway include stylish glass-fronted retail arcades on the 47th and 48th Street sides, designed to attract high-profile tenants. The upgrades will feature state-of-the-art amenities such as a boardroom, flexible business suites, wellness lounges, a golf simulator, a speakeasy, and a café.
A luxurious wellness suite will offer tenants infrared saunas, meditation rooms, and massage pods designed for relaxation and recovery. Meanwhile, the new tenants’ lounge will boast an upscale coffee bar and grab-and-go food options, aimed at elevating the tenant experience.
As RXR continues its aggressive strategy, they also announced the recapitalization of 75 Rockefeller Plaza, in partnership with Farallon Capital Management. This move is part of a larger $5 billion recapitalization of their 9 million square feet Manhattan portfolio.
With the ongoing transformation of Sixth Avenue, the implications for businesses and tenants are significant. Enhanced infrastructure and modern amenities are not just attracting media giants but are also setting a new standard for what tenants expect from office spaces.
What’s Next: As completion dates for these upgrades remain unspecified, industry watchers are keenly observing how these changes will influence leasing trends and tenant satisfaction in the coming months. The real estate landscape on Sixth Avenue is set to evolve dramatically, making it a focal point for both investors and companies alike.
Stay tuned for more updates on this developing story as these changes unfold, reshaping the future of one of New York City’s most iconic corridors.