Hi everyone! This is Alan Rozinski of
Metro Manhattan office space.
Good evening.

Now, this is
any time for a landlord to open a new major
office building in New York City? well,
you know the answer is: these are not
the best of times. That being , you
have a one-and-a-half million square foot
class A modern office building, One Vanderbilt,
by the landlord and developer S-L-
Green. It's located immediately west of Grand Central Terminal.
It's 42nd street between
Vanderbilt and Madison avenue; it's about
one and a half million square feet
it's 1401 feet tall;
it's got stories; it's got fewer
stories than most office buildings of a
comparable height are 14 to 20
feet so each floor has a really loft-like feel.

, it's going to be an uphill
battle to complete leasing
that building, but fortunately S.L. Green
has about 72 percent of the building leased.

the largest tenants are a TD Bank
another firm called the Carlisle Group
several very large national law firms so they
got about 28 per cent to lease and a bit of
a project; but you know i'm very
confident that that building's going to
, and given time , it'll it'll be fully
leased , and I mean, you have to understand
built in the first place.

Grand central station or the the area around Grand
Central Terminal has mostly older office buildings and
any company in a
state-of-the-art, class A property they're going to have
to go to areas Hudson Yards
One World Trade Center, Seven World Trade
Center in Lower Manhattan.
there's really not any very modern
office space in the vicinity of Grand
Central terminal in midtown east.

So um.. SL Green , this was ,
took maybe a little bit of a gamble but
not so much by... by putting this building, I think
construction was started in 2015
uh.. 2016; and it was in the context of
a midtown east rezoning, , there
were attempts to rezone a very large area around Grand
Central I think about 72 blocks in 2013
which failed, and once mayor de Blasio came
into office, announced with Sl green plans to
up uh.. One Vanderbilt and there would
be a quarter around vanderbilt rezoned to
allow modern high-rise development of
commercial space.

Now, you may ask
confident that the vacant four
five hundred thousand square feet
in this building are going to eventually
be leased. I'll tell you - Because you have a
building which is just
in a . A lot of people are
going to want to reduce their commute in
this environment and the long island rio road is going to
be stopping at grand central starting in 2022.

So for commuters in from
Connecticut, Long Island to other areas they can just
get out of Grand Central
and walk to a brand new building.

Also, there's really it; there are
no state-of-the-art
modern class a buildings
really want to go to Hudson Yards it's
you know the quality
is comparable, and you know for major corporations
they're going to take the long view on the market.
in the next six months
or a year with pandemic, fewer people
commuting their time frame is different than
smaller businesses.
they're going to be looking 10 years 15
years out, and they're going to view this
as an opportunity
to snap up class A modern office space
in midtown east of it.

Now, One Vanderbilt is of
the Empire State Building, and I think it's about
the same height
I like the Empire State Building it's
going to have an observatory which i
think opens next year generate
very very substantial revenue but um
unlike the empire state building which
i think was built the construction was
completed
in 1931 and the Chrysler Building
was uh.. in 1930 I think
both buildings it took them years and
years
to fully lease them i don't think they
leased and construction was
completed in the height of the great depression,
whereas One Vanderbilt you have it 72
percent leased, and even despite current conditions it's
a very very desirable uh
building in a terrific location.

I mean, you know, it's it's very very beautiful i
live on the Upper East Side
and I remember in the 60s looking down
and this thing was a real you
can see it in Central Park
it just looked awful and now that it's completed
with a spire it's just a really building
so we will see what the market holds, I mean, overall it's
going to be difficult for the commercial
real estate market in the next few years.
Certainly our vacancy rates are going to
rise greatly for generic class B
and kind of in in certain A buildings
and C buildings, but the
buildings like any quality property
are going to suffer less.

Hope you find
this video interesting if you have any
questions
please feel free to my
twitter handle
is at metro manhattan and of course
feel free to subscribe to my youtube
channel- Have a nice evening. Until the next time.