Posted Apr 27, 2010, 12:43 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 51,862
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http://www.observer.com/2010/real-es...s-go-1200-foot
For Steve Ross, Rail Yards Rent Starts When Apartments Cost $1,200 a Foot
By Eliot Brown
April 26, 2010
Quote:
The M.T.A. on Monday made public its new $1 billion deal with Stephen Ross' Related Companies to develop the West Side rail yards, and in it are some details about just when the agency can start to expect taking in rent for selling off the air over its giant 26-acre LIRR yard by the Javits Center.
According to the agreement, which is up for full board approval Wednesday and still needs to be signed by Related, the developer does not need to close on the deal until:
-Midtown office space availability rates hit 11 percent, according to brokerage CB Richard Ellis. While the current rate is at 14.8 percent as of March, 11 percent is relatively achievable, as according to CBRE numbers, midtown averaged well below 11 percent between 2005 and 2007.
-Manhattan co-op and condo sales price achieve an average $1,200 a square foot for a sustained period (it's slightly more nuanced than this). The fourth quarter of 2009 saw an average price of $1,051, according to Miller Samuel. The rate has cracked $1,200 a foot in three separate quarters in the last cycle, hitting a peak $1,322 a foot in the second quarter of 2008.
-The architectural billings index must pass 50 for the commercial sector. It's currently at a bit below 45, and was last over 50 in early 2008.
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