Amazon Anchors Midtown Comeback
Amazon has signed a 15-year lease for 330,000 square feet at 10 Bryant Park (also known as 452 Fifth Avenue), marking one of Midtown’s largest post-pandemic office leases. The property is owned by Property & Building Corporation (PCB), who purchased it from HSBC in 2010 and invested $100 million into renovations.
Amazon will pay $29.5 million annually in the first five years, increasing to $34.8 million over the lease term. The lease covers floors three through eleven—previously occupied by HSBC—and sits adjacent to Amazon’s Manhattan HQ at the former Lord & Taylor building.
The tech giant also has the option to expand into 145,000 square feet at a smaller PCB-owned building on 39th Street.
Midtown Office Market Signals Recovery
This lease is seen as a bellwether for Midtown’s Class A office market, suggesting confidence in high-quality space with built-in tenant demand. Office market observers point to Amazon’s return-to-office requirements and limited new inventory as major contributing factors.
Market-Rate Multifamily Drives NYC Investment Sales
According to Ariel Property Advisors, market-rate assets dominated NYC multifamily sales in Q1 2025, accounting for 88% of the $2.21 billion total sales volume—a 62% increase year-over-year.
Meanwhile, rent-stabilized properties made up just 11% of dollar volume, the lowest since 2010, highlighting the ongoing bifurcation in the multifamily market. Activity was strongest in Manhattan below 96th Street and in parts of Brooklyn, especially among buildings with 421a benefits or few regulated units.
Acadia Buys Prime Flatiron Retail
Acadia Realty Trust acquired a 13,092-square-foot retail condo at 85 Fifth Avenue for $46.8 million from SL Green and a partner. The unit, at the corner of Fifth and East 16th Street, is long-term leased to Nespresso.
SL Green previously bought the space for $59 million in 2020. The sale was brokered by a CBRE team and continues Acadia’s push to expand its urban retail portfolio in NYC.
Williamsburg Wharf: Brooklyn’s “Urban Resort” Hits Milestone
Sales at One Williamsburg Wharf have crossed the 50% mark since launching last fall. The 89-unit condo project—marketed as an "urban resort"—offers high-end amenities and is helping push North Brooklyn condo prices higher.
Q1 2025 saw a 26% year-over-year increase in North Brooklyn condo prices. A penthouse at the project just set a new neighborhood record with a $7.2 million sponsor sale.
Blackstone Issues Tariff Warning
National economic sentiment is cooling. Blackstone COO Jon Gray noted that proposed tariffs by President Trump are weighing on the firm’s real estate segment, which saw a 20% drop in distributable earnings year-over-year.
Gray emphasized that investor appetite slows amid uncertainty. Though tariffs may increase construction costs—reducing supply and potentially benefiting existing assets—any gains could be wiped out by a recession.
Silverstein Retreats on WTC Funding
Larry Silverstein has withdrawn his $3.7 billion federal loan application for 2 World Trade Center. The funds were sought through a U.S. Department of Transportation program typically used for rail infrastructure.
Silverstein had hoped to tie the tower’s location near transit to infrastructure criteria, but his pivot suggests the strategy may not have panned out. Alternative funding plans are now reportedly in the works.
Feds Take Over Penn Station Redesign
In a major governance shift, the U.S. Department of Transportation has announced Amtrak will now exclusively lead the Penn Station renovation and expansion.
As part of the federal takeover, a $72 million MTA grant has been revoked, while Amtrak’s $71 million grant has been reduced—moves the DOT says will save taxpayers $120 million. The project will proceed under a public-private partnership structure.
Governor Hochul noted this change would save the state $1.3 billion in allocated funds. However, the future of the MTA’s prior development strategy for the surrounding area remains uncertain.