Office Retrenchment Accelerates as Tenants Downsize
BuzzFeed has signed a lease for 42,000 square feet at 50 West 23rd Street—marking a major downsizing from its previous offices at 224 Park Avenue South (110,000 SF) and 229 West 43rd Street (107,000 SF). The lease, arranged by CBRE, includes the sixth floor and part of the fifth. Asking rents ranged from $68 to $70 PSF.
The reduction follows the closure of BuzzFeed News and multiple layoffs, reflecting a broader trend: media and tech tenants rethinking their real estate needs amid hybrid work, budget tightening, and shifting headcount.
Fox and News Corp. Plan Major Exit from Sixth Avenue
At 1211 Sixth Avenue, Fox and News Corp. plan to vacate roughly 330,000 square feet by November, despite renewing their lease just last year. The exit represents nearly a quarter of their total footprint in the building, which is owned by Ivanhoé Cambridge and RXR.
CBRE’s Mary Ann Tighe, who repped the tenant, said the downsizing was disclosed during lease negotiations. Still, the move—paired with law firm Ropes & Gray’s upcoming departure—will drop building occupancy from 94% to 74%. Ratings agency KBRA has since downgraded the property’s mortgage.
Manhattan Leasing Slides in February but Beats Long-Term Averages
Manhattan leasing activity fell 13% month-over-month in February, according to Colliers. But on a year-over-year basis, volume increased 38%, with leasing velocity 19% above the 10-year monthly average.
The data points to a bifurcated market: legacy tenants are shrinking footprints, while other sectors continue to push activity above historical norms.
Lidl Secures Anchor Spot in East Williamsburg Project
Lidl has leased nearly 27,000 square feet at 597 Grand Street in East Williamsburg, where it will anchor a mixed-use project developed by Goose Property Management. The deal was brokered by Schuckman Realty.
The site—formerly a Key Foods—will also include 185 rental units and was backed by $108.5 million in financing. Lidl has now completed 20 deals across New York City, including six in Brooklyn. The grocer was also behind the two largest retail leases in the borough in 2022.
Gotham Closes on East New York Parcel for 460 Units
Gotham Organization has acquired 35 Inspiration Lane from the Christian Cultural Center for $16.1 million. The site includes 312,276 buildable square feet and is already under active development for a 460-unit affordable housing project.
The $51-per-buildable-foot deal underscores Gotham’s continued focus on large-scale housing development in the outer boroughs. The building will span nearly 471,000 square feet.
Pre-Foreclosures Signal Trouble in Residential Development
Lender Silver Point Capital filed a $34.9 million pre-foreclosure action against Louis Greco’s 60-unit condo project at 475 Washington Avenue in Clinton Hill. The loan—originally issued in 2022 for $40 million—has allegedly fallen into default, despite multiple workout attempts.
Separately, a bankruptcy stay has been lifted on Greco’s 10-unit project at 63 Columbia Street in Dumbo, likely sending it to foreclosure auction.
Meanwhile in Chinatown, a venture involving Community Preservation Corporation, Neighborhood Restore HDFC, and Related Fund Management has filed an $11.3 million pre-foreclosure on a 30-unit rental at 120 Mott Street. The total outstanding debt is listed at $16.8 million.
Brookfield Refinances Greenpoint Tower for $153M
Brookfield Properties has refinanced its 359-unit residential building at 1 Blue Slip in Greenpoint. The $153 million loan was provided by BNP Paribas and replaces a $170 million mortgage from Bank of Nova Scotia.
The deal signals ongoing financial confidence in stabilized waterfront assets, even as other developers face tightening liquidity.
Extell Sues Philippe Chow to Clear Development Site
Extell Development is suing the Philippe Chow restaurant in Lenox Hill to enforce a demolition clause in its lease at 33–35 East 60th Street. The lawsuit follows Extell’s $103.3 million acquisition of the property, which is key to a planned high-rise development at 655 Madison Avenue.
The filing seeks back rent and damages if the tenant does not vacate. The suit reflects Extell’s continued push to unlock value through aggressive assemblage and redevelopment strategies.
David Childs, WTC Architect, Dies at 83
David Childs, the architect behind 1 World Trade Center and several other major New York buildings, passed away this week at age 83. His legacy includes Deutsche Bank Center, 1540 Broadway, and 35 Hudson Yards.
Known for his pragmatism and ability to navigate politically sensitive projects, Childs was praised by Larry Silverstein, who said: “No single individual was more responsible for the rebuilding of the World Trade Center than David.”