The Aporia · Third Avenue, Lexington seeing faster growth as prime corridors fill up

Third Avenue, Lexington seeing faster growth as prime corridors fill up

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Cuozzo, S. (2026, October 4). Third Avenue, Lexington seeing faster growth as prime corridors fill up. New York Post. https://nypost.com/2026/10/04/business/third-avenue-lexington-seeing-faster-growth-as-prime-corridors-fill-up/

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Quick Summary

As prime office space in Manhattan becomes scarce and rents rise above $200 per square foot, companies are increasingly looking to secondary markets like Midtown's Lexington Avenue and Third Avenue for leasing opportunities. According to JLL data, lease counts on these avenues grew by 28.6% annually on Lexington and 18.4% annually on Third from 2021 to 2025, with Third Avenue set to surpass its entire 2025 activity this year alone. Notable deals include Bloomberg LP's expansion at SL Green’s 919 Third Avenue and significant property upgrades by landlords such as Waterman Interests' $80 million renovation of 850 Third Avenue.

Written by AI on 2026-10-04, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

Manhattan's office leasing market is showing signs of expansion into secondary markets as prime corridors become scarce and rents rise. According to JLL data, Third Avenue and the northern stretch of Lexington Avenue, north of 42nd Street, have seen significant growth in lease counts from 2021 to 2025, increasing by 28.6% annually for Lexington and 18.4% annually for Third Avenue. In particular, leasing on Third Avenue is expected to exceed its entire 2025 activity this year.

This shift has been fueled by companies seeking alternatives as trophy space availability in prime areas drops below 4.9%, with rents exceeding $200 per square foot elsewhere. A notable example of the renewed interest in these secondary markets is when Bloomberg LP extended its lease and added more square footage at SL Green’s 919 Third Ave., setting a precedent for other companies to follow suit. Additionally, significant property investment by landlords such as Waterman Interests’ $80 million upgrade of mostly vacant 850 Third Avenue underscores the growing appeal of these areas.

Written for “Real Estate Growth New York” on 2026-11-01, grounded in this article and the 0 other(s) covering the same event.

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NYC doom loop? More like boom loop — as Manhattan office space fills up Different event

New York Post

Hedges 2 of 20 claims Outlet record 66/100

“While both articles discuss Manhattan's office space market growth post-pandemic, they describe different aspects of the trend—overall office demand versus shifts into secondary markets.”

Signals How these are calculated →

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sentences that state something as happening or true

Uncertain

0 of 16 hedged ("reportedly", "may", "according to")

Leaning

not political

takes no side on a contested political question

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66/100

New York Post's corrections and hedging, across everything collected from it. Not a measure of accuracy.

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Who wrote this

Steve Cuozzo

20 article(s) here · 1 carrying a prediction

🔮 Readers emailed us after our report last week that some locations of Fireman Hospitality Group, the bankrupt restaurant company founded by the late Shelly Fireman would be taken over by little-known Ciao Hospitality Group.

2026-10-25 · assertive framing · What is Ciao Hospitality Group?

🔮 Developers of the Anagram apartment tower under construction on the Gowanus Canal released new images of the project, which will have 158 rental units, stores and offices.

2026-10-25 · assertive framing · New images released of 20-story Anagram apartment tower along NYC’s Gowanus Canal

🔮 The purchase, expected to close this week, will give Fertitta control of Manhattan’s high-volume Trattoria Dell’ Arte, Fiorello’s and Bond 45.

2026-10-20 · assertive framing · Trattoria Dell’Arte, Fiorello’s and Bond 45 to get second life thanks to Tilman Fertitta deal

🔮 He wrote that earlier this year Databricks “made a bet” that “world-class AI would be built in Manhattan.

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🔮 The work is expected to wrap up in March.

2026-10-18 · assertive framing · SL Green putting finishing touches on $225M facelift at 245 Park Ave.

🔮 Marquee-name tenants have already been signed for about half of the building’s 930,000 square feet — insurance giant Starr and law firm McDermott Will & Schulte.

2026-10-11 · assertive framing · BXP’s 343 Madison Ave. tower is going up

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2026-10-07 · assertive framing · Happy 30th birthday to Fox News — the network that changed the world

🔮 The complex would contain up to 2,300 apartments — estimated to cost around $1 billion and perhaps the city’s largest fully-entitled housing development site.

2026-10-04 · assertive framing · Bronx housing, retail site near planned new Metro-North station set to hit market

🔮 The repositioned tower will be re-

2026-10-04 · assertive framing · Third Avenue, Lexington seeing faster growth as prime corridors fill up

🔮 Meanwhile, even as demand shows no sign of letting up, no additional inventory will become available for years at such planned projects as Vornado and Ken Griffin’s 350 Park Ave., BXP’s 343 Madison Ave. and SL Green’s 346 Madison Ave.

2026-10-02 · assertive framing · NYC doom loop? More like boom loop — as Manhattan office space fills up

Also by Steve Cuozzo

What is Ciao Hospitality Group?

2026-10-25 · New York Post

New images released of 20-story Anagram apartment tower along NYC’s Gowanus Canal

2026-10-25 · New York Post

Trattoria Dell’Arte, Fiorello’s and Bond 45 to get second life thanks to Tilman Fertitta deal

2026-10-20 · New York Post

AI company Databricks doubling footprint at 5 Bryant Park

2026-10-18 · New York Post

Nothing else under this byline is closely related to this article, so these are simply their most recent.

All 20 articles by Steve Cuozzo →

Claims (16 extracted, 0 hedged)

Manhattan’s office leasing frenzy is no secret, but the way it’s seeping into secondary markets gets less attention. asserted

it → seep → attention

JLL’s latest data show that as trophy space in prime corridors becomes scarce and rents skyrocket, companies are looking more favorably on Midtown Lexington avenue and even at the market’s weakest link, Midtown Third Avenue. asserted

companies → show → link

Leasing on Third so far this year is on track to top all of its 2025 activity as tenants broaden their searches to escape drum-tight 4.9% trophy availability elsewhere and rents north of $200 per square foot. asserted

tenants → lease → foot

In fact, Lexington and Third avenues north of 42nd Street posted the fastest growth in lease counts from 2021 to 2025 — 28.6% and 18.4% annually, respectively — and Third Avenue is on pace to surpass its entire 2025 leasing activity this year. asserted

Avenue → post → activity

A breakthrough in the previously moribund market east of Park Avenue came when Bloomberg LP extended its 750,000 square-foot lease and added 175,000 more at SL Green’s 919 Third Ave. two years ago, a deal first reported in The Post. asserted

LP → come → Post

Others took the cue. asserted

Others → take → cue

“There’s only so much trophy space to go around,” said JLL senior research director Andrew Lim. asserted

Lim → ’ → ?

“Tenants still want a great building, amenities and an owner that’s investing in the property, but because vacancy on prime avenues is so low, they are having to cast a much wider net to find what they need,” he said. “You can see it happening on Lexington Avenue. asserted

it → want → Avenue

This year alone, we’ve seen companies move from 300 Park, 280 Park and 430 Park to 560 Lexington, while others are expanding in the building,” Lim said. asserted

Lim → see → building

“Third Avenue is starting to benefit from the same dynamic,” Lim said. asserted

Lim → start → dynamic

“There are good buildings there that have been upgraded and can offer tenants much of what they’re looking for at a different price point.” asserted

they → be → point

New leases on Third in 2026 have included Kirkland & Ellis’s impressive 52,000 square-foot expansion at 900 Third; a new, 28,000 square-foot lease for Industrious at 857 Third; for Dutchess Management at 757 Third; and deals at 880, 685 and 950 Third. asserted

leases → include → Third

Lexington has seen more than 110,000 square feet of leasing so far this year including for Marex and SummitTX at 560 Lexington and five law firms and financial groups at 370 Lexington. asserted

Lexington → see → Lexington

Running parallel to the trend is a surge in significant property investment by landlords, such as Waterman Interests’ and HPS Investment Partners $80 million top-to-bottom upgrade of mostly vacant 850 Third, where a 4,500 square-foot restaurant from the Kellari team just signed a lease. asserted

restaurant → run → lease

The repositioned tower will be re- asserted

tower → reposition → ?

Ongoing residential conversions, such as at SL Green’s 750 Third, will enliven the corridor with new apartment tenants as well. asserted

conversions → ongoe → tenants

Third Avenue, Lexington seeing faster growth as prime corridors fill up

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Claims (16 extracted, 0 hedged)