Morgan Stanley Wants Its Next Landlord To Buy Its Current Offices

Morgan Stanley is seeking a huge new headquarters in Manhattan, but its search comes with a catch.

The banking giant is looking for a new 1.9M SF home, and asks that its new landlord buys 1585 Broadway and an office condo at 522 Fifth Ave., which Morgan Stanley owns and occupies, The Real Deal reports.

While a 1.9M SF tenant would anchor any upcoming or under-construction office building in the city, Morgan Stanley's ask could be tricky, considering the New York office market is strong in leasing activity but considerably weaker in investment sales.

The concern in the sales market stems from the strength of the leasing market: the enticing new developments on the Hudson River at Hudson Yards and Manhattan West make Midtown office buildings such as 1585 Broadway and 522 Fifth less appealing by comparison. The fact that they would be empty once Morgan Stanley moves only heightens the challenge.

Morgan Stanley itself is one of the office tenants looking to move west, with previously reported negotiations at 50 Hudson Yards and a rumored interest in Brookfield Office Properties' Manhattan West development nearby.

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