Content area
Full Text
New Yorkers' famous love of a good deal does not always extend to the commercial real estate market. Given a choice between a terrific bargain and paying top dollar for a prestigious address, users of space in Manhattan these days are opting for the latter.
That's the clear message from three big towers now under construction: two in midtown, where the developers have found demand for space to be strong, and one downtown, where demand has yet to materialize. Developer Larry Silverstein has not lined up a single tenant for his building at 7 World Trade Center, even though he is offering the best prices in town for virgin space.
"We think we are from 25% to 50% less than what a comparable new tower in midtown would be from a total cost standpoint," says Janno Lieber, director of World Trade Center Development for Mr. Silverstein.
Despite that seemingly unbeatable edge, the action is in midtown. Developer Vornado Realty Trust demanded premium prices for space in its new property on Lexington Avenue and East 58th Street, and appears to have filled the building. At 1 Bryant Park on West 42nd...