The New Manhattan Office Trend: Penthouses

“An Art form we have been evolving for decades,” Rob Speyer, Tishman Speyer’s Chief Executive remarked when considering how Tishman Speyer continues to uncover value at its assets. Keiko Morris at The Wall Street Journal recently wrote about 2 midtown projects. The first at 200 Park Ave, Tishman Speyer was able to leverage new technology and move machine rooms to develop a spectacular, 24,000 square foot penthouse on the 58th floor.

Tishman Chief Executive Rob Speyer spearheads a new initiative: Penthouses built by tapping undeveloped space, unlocking additional real estate value.

The second project currently in development on the 43rd floor of 520 Madison Ave will more than double the 7,100 square-foot space once dedicated to mechanical equipment and build a 21,000 square-foot penthouse with a 2,200 square-foot terrace and views of Central Park.

“Typically, the penthouse additions feature high ceilings, tons of light through glass facades or large windows and connecting outdoor space. Landlords often have to be creative in finding the space to build these structures, sometimes moving mechanical equipment to another part of the building, tapping undeveloped space or transferring air rights from adjacent lots”, said real-estate lawyer Jonathan Mechanic in the Wall Street Journal article published on April 16th, 2017.

These renovations are never simple, considering their logistical scope, and without disrupting the tenants in the building, however finding and creating these types of opportunities are part of the fabric of the Tishman Speyer culture.  “We’re always looking around the corner and pursuing ways to unlock additional value,” Rob Speyer told the Wall Street Journal.

The penthouse at 200 Park Avenue was quickly leased and it is anticipated that the 520 Madison Avenue penthouse with a terrace will draw significant interest as well.

“These office penthouse additions are part of a broader push by owners to carve out more dynamic amenity spaces to appeal to tenants looking to embellish their brands and recruit top employees”, said Brian Waterman, vice chairman at real-estate-services firm Newmark Grubb Knight Frank in the Wall Street Journal article.

Of the 200 Park Avenue Penthouse, “You feel like you can reach out and grab the spire of the Chrysler Building,” said Tishman Chief Executive Rob Speyer. This is certainly a unique amenity and has an appeal that is unparalleled.

The New Manhattan Office Trend: Penthouses (2017) by Keiko Morris. Retrieved from: https://www.wsj.com/articles/the-new-manhattan-office-trend-penthouses-1492344000