{"id":364224,"date":"2026-10-04T16:48:09","date_gmt":"2026-10-04T16:48:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/364224\/"},"modified":"2026-10-04T16:48:09","modified_gmt":"2026-10-04T16:48:09","slug":"third-avenue-lexington-seeing-faster-growth-as-prime-corridors-fill-up","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/364224\/","title":{"rendered":"Third Avenue, Lexington seeing faster growth as prime corridors fill up"},"content":{"rendered":"

Manhattan\u2019s office leasing frenzy is no secret, but the way it\u2019s seeping into secondary markets gets less attention.<\/p>\n

JLL\u2019s latest data show that as trophy space in prime corridors becomes scarce and rents skyrocket, companies are looking more favorably on Midtown Lexington avenue and even at the market\u2019s weakest link, Midtown Third Avenue.<\/p>\n

Leasing on Third so far this year is on track to top all of its 2025 activity as tenants broaden their searches to escape drum-tight 4.9% trophy availability elsewhere and rents north of $200 per square foot.<\/p>\n

\"AerialMidtown Lexington and Third avenues avenue are getting more favorable looks from companies as prime corridors become scarce and rents skyrocket. Google Earth<\/p>\n

In fact, Lexington and Third avenues north of 42nd Street posted the fastest growth in lease counts from 2021 to 2025 \u2014 28.6% and 18.4% annually, respectively \u2014 and Third Avenue is on pace to surpass its entire 2025 leasing activity this year.<\/p>\n

A breakthrough in the previously moribund market east of Park Avenue came when Bloomberg LP extended its 750,000 square-foot lease and added 175,000 more at SL Green\u2019s 919 Third Ave. two years ago, a deal first reported in The Post<\/a>.<\/p>\n

Others took the cue. \u201cThere\u2019s only so much trophy space to go around,\u201d said JLL senior research director Andrew Lim.<\/p>\n

\u201cTenants still want a great building, amenities and an owner that\u2019s investing in the property, but because vacancy on prime avenues is so low, they are having to cast a much wider net to find what they need,\u201d he said.<\/p>\n

\u201cYou can see it happening on Lexington Avenue. This year alone, we\u2019ve seen companies move from 300 Park, 280 Park and 430 Park to 560 Lexington, while others are expanding in the building,\u201d Lim said.<\/p>\n

\u201cThird Avenue is starting to benefit from the same dynamic,\u201d Lim said. \u201cThere are good buildings there that have been upgraded and can offer tenants much of what they\u2019re looking for at a different price point.\u201d<\/p>\n

\"ExteriorFive law firm and financial groups signed leases for 370 Lexington Ave. this year. Robert Miller<\/p>\n

New leases on Third in 2026 have included Kirkland & Ellis\u2019s impressive 52,000 square-foot expansion at 900 Third; a new, 28,000 square-foot \u00a0lease for Industrious at 857 Third; for Dutchess Management at 757 Third; and deals at 880, 685 and 950 Third.<\/p>\n

Lexington has seen more than 110,000 square feet of leasing so far this year including for Marex and SummitTX at 560 Lexington and five law firms and financial groups at 370 Lexington.<\/p>\n

Running parallel to the trend is a surge in significant property investment by landlords, such as Waterman Interests\u2019 and \u00a0HPS Investment Partners $80 million top-to-bottom upgrade of \u00a0mostly vacant 850 Third, where a 4,500 square-foot restaurant from the Kellari team just signed a lease. The repositioned tower will be re-launched later this year.<\/p>\n

Ongoing residential conversions, such as at SL Green\u2019s 750 Third, will enliven the corridor with new apartment tenants as well.<\/p>\n","protected":false},"excerpt":{"rendered":"Manhattan\u2019s office leasing frenzy is no secret, but the way it\u2019s seeping into secondary markets gets less attention.…\n","protected":false},"author":2,"featured_media":364225,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[288,1489,2361,35427,75,84,83,360,9,24,63,3273,1491,3274],"class_list":["post-364224","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-business","tag-commercial-real-estate","tag-leases","tag-lexington-avenue","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-midtown","tag-new-york","tag-new-york-city","tag-nyc","tag-office-buildings","tag-real-estate","tag-realty-check"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/364224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=364224"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/364224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/364225"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=364224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=364224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=364224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}