During the quarter, 140,803 square feet of office leases commenced in the Suburban portfolio, 32,545 square feet of which represented office leases that replaced previous vacancy, and 108,258 square feet of which represented office leases that had average starting rents of $30.04 per rentable square foot, representing a 7.0 percent decrease over the previously fully escalated rents on the same office spaces.
Significant leases that were signed during the fourth quarter included:
- New lease on 57,359 square feet with Emerge212 3CC LLC for 15 years at 3 Columbus Circle;
- Early renewal on 44,646 square feet with Seven Eleven Car Park LLC for 10 years at 711 Third Avenue;
- New lease on 38,026 square feet with Robert Half International, Inc. for 11 years at 125 Park Avenue;
- Renewal and expansion on 29,397 square feet with Everest Reinsurance Company for 10 years at 461 Fifth Avenue;
- New lease on 22,047 square feet with Microsoft Corporation for 10.3 years at 641 Sixth Avenue; and
- Early renewal on 17,000 square feet with Blaire Corporation for 10.4 years at 6 Landmark Square, Stamford, CT.
Marketing, general and administrative, or MG&A, expenses for the quarter ended December 31, 2012 were $21.4 million, or 5.2 percent of total revenues including the Company’s share of joint venture revenue compared to $18.7 million, or 4.9 percent for the quarter ended December 31, 2011. MG&A expenses for the fourth quarter of 2012 included contributions totaling $430,000 to Hurricane Sandy-related charities. MG&A for the year ended December 31, 2012 was $82.8 million, or 5.1 percent of total revenues including the Company’s share of joint venture revenue compared to $80.1 million, or 5.4 percent for the year ended December 31, 2011.
Real Estate Investment ActivityIn October 2012, the Company extended the ground lease at 673 First Avenue to August 2087, an additional 50 years past its scheduled 2037 expiration date, ensuring the Company’s ability to control the property and significantly enhancing its value.