Deutsche’s withdrawal
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Deutsche Bank is downsizing so fast it’s giving up some of its relocation space at Time Warner Center before it even moves in.
The German giant has already returned two floors to landlord Related Companies, sources told Realty Check. Although the floors contain only about 60,000 square feet of the 1.1 million square feet Deutsche has leased at the Columbus Circle tower, banking and real estate insiders said it could presage future reductions through sublease.
Deutsche is moving its New York headquarters to Columbus Circle from 60 Wall Street. The bank will get the keys in January 2020 but won’t start moving in until 2021.
Shedding two floors in the north tower was permitted under Deutsche’s lease with Related, which was signed in May 2018, sources said. That’s more than a year before the bank announced this month that it would chop 18,000 jobs — representing 20 percent of its global workforce — by 2022. Insiders said the brunt of the cutbacks would be in New York and London.
All hands — reps for both Deutsche and Related as well as the bank’s real estate broker, JLL’s Peter Riguardi — declined to comment.
The layoffs are part of a drastic downsizing, announced by Deutsche CEO Christian
Sewing, to get the bank back on track after a poor performance in its investment banking division.
Deutsche was slicing its New York digs even before the decision to cut two floors loose at Time Warner Center, which is to be renamed Deutsche Bank Center. Its uptown lease for 1.1 million square feet compares with 1.6 million square feet at 60 Wall St.
Warner Media, formerly known as Time Warner, is leaving Columbus Circle for Related’s 30 Hudson Yards.
If you think there are more Chick-fil-A’s, Taco Bells, Bare Burgers, “artisanal” pizza spots and salad bars sporting 100 spins on the word “green” on city sidewalks, your eyes — and taste buds — aren’t fooling you.
Fast-casual and quick-service restaurants have accounted for 35 percent of all food-and-beverage leases in Manhattan since 2016, reports CBRE. The brokerage also noted that since 2015, F&B leases have made up nearly one-third of all retail transactions in Manhattan.
The figure was a mere 15 percent as recently as 2010.
More fast-casuals are coming: Chains that plan to expand here include Paris Baguette, Veggie Grill and David Chang’s fried-chicken favorite Fuku.
It’s a good thing New Yorkers like to eat on the run — or the dismal retail-vacancy picture would be a lot worse.
According to CBRE, New Yorkers spend 130 percent more on food outside their homes than do people anywhere else in the US. That works out to $8,082 per year spent on food outside the home compared to just $3,512 on average elsewhere.
The casual- and fast-food frenzy in the Big Apple is due partly to many more single-member households than anywhere else.
This is especially prevalent in Manhattan, where 46 percent of all households are single-person versus just 27 percent nationally. Men and women living alone and with tiny kitchens are inclined to go out or order in.
Moreover, New Yorkers are much more likely to walk than in other locales. Heavy sidewalk traffic makes for busier restaurants.
If you’re tired of so much food-on-the-go, consider the alternative: more “for lease” signs and more bank branches where the only bites come out of your account Skincare products maker Korres USA is putting on a happy face at 80 Maiden Lane. The Greek brand, which specializes in all-natural cosmetics, is upsizing from 4,500 square feet in the tower to 10,000 square feet. The asking rent was $58 a square foot. The new lease was revealed by Cressa Advisors’ Thomas P. Sullivan and David P. Danick, who represented the tenant. Landlord AM Property Holdings Corp. was repped inhouse by Paul Wasserman.