July 5th - July 9th, 2010

New Office Construction Remains at a Standstill

July 6 – Building starts are at their lowest level in years. A report from the New York Building Congress found most of the office construction is focused on renovations and alterations. If the trend continues for the rest of 2010, the report says building starts would be only$489 million, compared with $2.6 billion in 2009. Building Congress President Richard Anderson told Crain’s that office leasing is slowly rising again and there could be a renewed expansion for the next few years.

Flag to Return to WTC Site

July 6 - The tattered banner measuring 20 by 30 feet, will be donated to the National September 11 Memorial & Museum. It was recovered after 9-11 by New York Says Thank You Foundation, a nonprofit that sends volunteers to rebuild towns after disasters. The flag, which was flying over 90 West Street, was sewn back together by volunteers in Greensburg, Kansas.

Queen Elizabeth visits Lower Manhattan

July 7 – The 84 year old monarch laid a wreath at the WTC site and she opened the British Garden of Remembrance in Hanover Square. Sixty seven British citizens were killed on 9-11.

PA Chooses Private Partner for 1WTC

July 7 – Developer Douglas Durst has won the high stakes contest with Related Companies, according to several published reports. Durst will now invest at least $100 million to get a minority stake in the building and will the company will be in charge of leasing and building operations. The PA said the proposal from Related was more ambitious in that it added more amenities for office tenants.

Deutsche Bank Maybe Considering Former AIG Headquarters

July 7 – There’s speculation that talks are underway between Deutsche Bank and the building’s developers, Youngwoo and Kumho. According to The New York Post “Between the Bricks” column, the plan is to break down the walls that separate five floors between the two buildings and extend all of the bank’s trading floors into the two buildings. Deutsche Bank had no comment.

Apartment Vacancies Drop

July 8 – The Wall Street Journal and several other publications reported that the quarterly vacancy rate fell below 1% for the first time in three years. Citi Habitats report also found monthly rents are up across Manhattan; in FiDi, the average rent for a one bedroom is now close to $3400.  Another report from Cushman & Wakefield shows office leasing activity has returned to 2006 levels, the vacancy rate fell in the second quarter and rents continue to fall to about $54 a square foot in Midtown and about $38 Downtown.