BY GUS DELAPORTE

A 10-year lease renewal signed by Empire State Development at Time Equities’ 633 Third Avenue stands to save the agency $2.5 million. In the 104,200-square-foot deal for floors 33 to 37, Empire State Development will pay rents in the low-$60s per square foot, according to data from CompStak, down from rent in the mid-$80s per square foot.

The reduction in rent of approximately $24 per square foot will reduce Empire State Development’s yearly rent to $6.5 million through June 2016 from the previous annual rent of nearly $9 million, according to notes from an April directors meeting. Rents will increase to $68.50 per square foot, or over $7 million per year, from July 2020 until the termination of the lease, but still represent considerable cost savings for the urban development corporation.

To read the full story, click here

BY BILLY GRAY

Hollywood on the Hudson is getting a new star.

YouTube announced plans this week for a creative studio in Chelsea, a neighborhood at the forefront of Manhattan's production (and post-production) boom. The video-sharing site will open its 25,000-square-foot digs at 22 West 21st Street in October 2014.

To read the full story, click here

BY J.D. PARKER

I’ve heard this line more than once in my career.

At the beginning of my career, it would upset me and make me nervous, and I would fear that the deal would collapse. Now every time I hear it, I smile and get excited. The logic behind the shift in my attitude is that if someone is not serious about making a deal happen, he would reject the offer. When a seller asks for my fee, I know she wants to make a deal and I’m within striking distance of crossing the finish line.

To read the full story, click here

BY RICHARD PERSICHETTI

How long does Manhattan office space stay on the market for lease? The simple answer to that is an average of 19 months, currently. But with a market as large and dynamic as Manhattan’s, let’s take a closer look at which submarkets and classes of space lease up the fastest.

Sticking with the entire Manhattan market, the average time that Class B space spends on the market is 15 months, while Class A space averages 23 months. This is driven by both Midtown and Midtown South Class B space averaging 14 months on the market. This trend also supports the demand from value-driven tenants over the past two years and the lower Class B availability rate of 10.8 percent, compared with the 12.5 percent Class A availability rate. With Class B space on the market an average of eight months less than Class A space, asking rents have increased more steeply in these properties—by 8.1 percent since the end of 2012—while Class A asking rents increased only 2 percent.

To read the full story, click here