DoorDash Expands Manhattan Footprint – Commercial Property Executive
A joint venture between BXP, formerly known as Boston Properties, and J.P. Morgan Global Alternatives has secured a 115,382-square-foot lease with meal delivery firm DoorDash. The tenant is doubling the space it occupies at 200 Fifth Ave., in Manhattan. Cushman & Wakefield represented both parties in the deal.
The tenant moved into the building in March 2023, occupying 57,691 square feet on the eighth floor, subleasing the space from Yelp, Commercial Observer reports. DoorDash is now converting its commitment to a direct 11-and-a-half-year lease with the landlord and expanding its footprint to the ninth floor. The firm will move into the new space by the end of 2024.
J.P. Morgan purchased the property in 2011 for $799.4 million, according to CommercialEdge data. In November 2022, BXP acquired a 27 percent stake in the asset, for which it paid $280 million as reported by The Real Deal. In 2018, the building became subject to a $600 million loan from Bank of China, CommercialEdge shows.
Originally built in 1909 and renovated in 2008, 200 Fifth Ave. spans 860,000 square feet across 14 stories. The LEED Platinum-certified building also includes some 75,000 square feet of retail space, mostly occupied by Italian market chain Eataly. Other tenants at the property include Grey, IMG and Tiffany, according to the same source.
Prices drop in Manhattan’s office market
Cushman & Wakefield Chairman Bruce Mosler and Executive Vice Chair Ethan Silverstein, along with Managing Director Anthony LoPresti and Senior Associate Bianca Di Mauro represented the landlord in the deal. The company’s Vice Chairman Greg Pickett and Vice Chair Adam Ardise worked on behalf of DoorDash.
As of November, Manhattan remained the priciest market in the U.S., with an average listing rate of $70.78—marking a 5.3 percent decrease year-over-year, according to a recent CommercialEdge report. The vacancy rate in the borough clocked in at 17.4 percent, a 2.5 percent increase over 12 months and below the national average of 18.2 percent, the same source shows.