Israeli Bank Vacating Longtime Fifth Avenue Office For Grace Building
The Israel Discount Bank has agreed to lease more than 100K SF at the Grace Building near Bryant Park.
This lease is for 125K SF on the second, eighth, ninth and part of the 10th floors. Asking rents in the building, which sits at 1114 Sixth Ave. with views of Bryant Park are around $100 per SF.
The bank is leaving 511 Fifth Ave. and its new location at the Grace Building will feature its own entrance in the Kreuther chocolate store at 43 West 42nd St., per the Post. The bank has occupied all of the 125K SF 511 Fifth for years, but is moving to the Grace Building for an image boost.
Leasing has been strong in New York City this year, with average rents now at nearly $82 per SF, a record. Midtown's offices have been dragged down by large blocks of space hitting the market from the vast amounts of new office construction in the city in recent years.
There is more on the way, too; Brookfield is expecting to deliver some 1.6M SF of renovated space to the city’s supply in 2023 when it opens its revamped building 660 Fifth Ave., currently known as 666 Fifth. The Canadian equity giant is also building Two Manhattan West, a nearly 2M SF, $2B tower on the Far West Side.
Newmark Knight Frank’s Lance Korman, Brian Waterman and David Berke represented IBD. CBRE’s Peter Turchin represents the Grace Building, and Brookfield’s Duncan McCuaig brokered the deal in-house.