Pace of NYC Office Building Sales and Offerings on the Rise
New York City’s strengthening Office market has boosted the confidence of office building owners that may have held back on sales offerings since the pandemic due to resulting high vacancies caused by remote work and a highly challenged office market. The pace of office properties being introduced to the investment sales market as well as those that have sold are quickly rising in numbers. Two larger sales offerings announced last week include:
- 125 West 55th Street, located between 6th and 7th Avenues in the Plaza District, JPMorgan Chase introduced the sale offering of the approximately 587,666-square-foot, block-through building at a reported asking price of $270 million — about half of the $550 million ask when the building was previously offered just before the onset of the pandemic in 2020. JPMorgan purchased the 23-story, 1980s-era building from Boston Properties (rebranded BXP) for $470 million in 2013. Currently about 50% vacant, the majority of the space on the upper floors was vacated by financial firm Macquarie Group upon relocating to 660 Fifth Avenue (formerly 666 Fifth Avenue).
- 575 Fifth Avenue, located on the southeast corner of East 47th Street in the Grand Central District, co-owners MetLife and Beacon Capital Partners introduced the sale offering of the 35-story approximately 555,000-square-foot building. Currently about 87% leased, the sellers are hoping to fetch north of $400 million. Although the price is similar to the 2022 offering, in addition to the co-owned 500,000-square-foot office condominium, this time the sale also includes the over 46,000-square-foot retail unit at the base of the building. MetLife purchase the property in 2005 for $385 million, reportedly selling a 50% stake to Beacon for an undisclosed price in 2015.
The week of September 15th also brought news of the $42 million sale of the 6-story Standard Motors Product Building at 37-18 Northern Boulevard in Long Island City, Queens to Pearl Realty Management. Seller RXR Realty purchased the 1900s-era property offering approximately 300,000 square feet for $110 million in 2014. According to online real estate platform Costar, the building is about 75% leased with a roster of tenants that includes The Jim Henson Foundation, Kodak Film Lab New York, as well as recent renewals by luxury homebuilder I-Grace and luggage maker Rimowa.
Source: https://commercialobserver.com/2025/09/rxr-standard-motors-lic/
Source: https://therealdeal.com/new-york/2025/09/11/jpmorgan-puts-125-west-55th-street-for-sale/