Downtown Manhattan’s Financial District (FiDi) is facing headwinds, but real estate investors are betting big on a turnaround. The spotlight is on 60 Wall Street, a massive, currently vacant office tower undergoing a significant $250 million renovation by Paramount Group. This 1.6 million square-foot property is seen as a crucial test for the district’s struggling office market, and its success or failure could set the tone for FiDi’s future.
Originally built for JP Morgan in the 1980s and later owned by Deutsche Bank, 60 Wall Street was acquired by Paramount Group in 2007 through a sale-leaseback agreement. In 2017, Singapore’s sovereign wealth fund GIC joined as an investor. While Paramount Group holds a smaller equity stake, they are at the forefront of this ambitious project, managing the property and spearheading the marketing and leasing efforts.
For Paramount Group, a major Manhattan real estate player, this is a bold move. The Financial District is grappling with office vacancy rates as high as 27% in the east and 34% in the west, according to Cushman & Wakefield data. This excludes the World Trade Center area, highlighting the depth of the challenge. As other FiDi buildings also compete for tenants, 60 Wall Street is under intense scrutiny. Interestingly, the topic was absent from Paramount’s recent second-quarter earnings call, suggesting a potentially sensitive phase for the project.
60 Wall Street exterior
An exterior view of the renovated 60 Wall Street, showcasing its modern design and prominent position in the Financial District.
One seasoned broker, observing from the sidelines, emphasized the high stakes: “It’s sink or swim for downtown depending on Paramount signing tenants at 60 Wall Street. Even a single major lease could dramatically shift perceptions of the downtown office market.” Paramount Group, under the leadership of CEO Albert Behler, is well-positioned to take on this challenge. Their extensive 13.8 million square-foot global portfolio, largely concentrated in Manhattan, includes prestigious addresses like 1301 and 1325 Sixth Avenue, 712 Fifth Avenue, and 1633 Broadway.
Paramount’s marketing strategy for 60 Wall Street is encapsulated in the slogan “Wall Street But Not As You Know It.” A recent tour with Peter Brindley, Executive Vice-President and Head of Real Estate at Paramount, revealed the transformation. The office floors are largely column-free, boasting impressive 13- to 16-foot ceiling heights and panoramic views previously enjoyed exclusively by the building’s former occupants.
Above the podium level, the renovated tower maintains the essence of the original Kevin Roche/John Dinkeloo design, blending neoclassical and Postmodern architectural styles. However, the lower levels have been completely reimagined. The original lobby, once described as an “ice cream parlor blown up to monumental scale” due to its opulent 1980s design, is being replaced by a welcoming, triple-height atrium. This revitalized privately-owned public space (POPS) between Wall and Pine Streets will feature a skylight piercing through the podium and a striking 100-foot-tall green wall, creating a vibrant and inviting atmosphere.
Rendering of 60 Wall Street atrium
An architectural rendering of the new triple-height atrium at 60 Wall Street, highlighting the skylight and the impressive 100-foot green wall, designed to create an inviting public space.
Natural light will flood the interior through new, triple-height windows installed in the former trading floors. Furthermore, a grand staircase and elevators will provide direct connections to the No. 2 and 3 subway lines, enhancing accessibility for tenants and commuters. Adding to the building’s appeal, a substantial 30,000 square-foot amenity space for tenants is being developed. Terraces are being incorporated on several office floors, offering outdoor spaces. Infrastructure and sustainability upgrades are also key components of the renovation, including an advanced ventilation system with MERV 15 filtration to block viruses.
60 Wall Street’s location boasts exceptional connectivity, with access to 11 subway lines directly beneath or within a few blocks. Employees will also benefit from the proximity to the Hudson and East River waterfronts, a diverse array of dining options, the revitalized South Street Seaport, and shopping destinations ranging from discount retailers to high-end department stores like the soon-to-open Printemps at Brookfield Place and the WTC Oculus.
A grand staircase and elevators are to connect with the No. 2 and 3 subway lines below.
Conceptual design for the grand staircase and elevator access at 60 Wall Street, connecting directly to the subway lines, improving transit convenience for building occupants.
Despite these compelling features, the leasing campaign, spearheaded by CBRE, may encounter challenges. While rumors circulated about interest from major corporations like American Express, no significant leases have been confirmed in downtown Manhattan. However, there are encouraging signs of increased leasing activity. May 2024 saw 321,000 square feet leased, exceeding the five-year monthly average for the second time this year, according to CBRE. Year-to-date leasing reached 1.02 million square feet, a 26% increase compared to 2023.
Peter Brindley remains optimistic, stating, “Tenant demand is steadily improving, particularly for top-tier, well-located properties. 60 Wall Street was ahead of its time in its original design, incorporating features now highly sought after in new constructions, such as high ceilings, column-free layouts, robust infrastructure, and impressive views.” He added, “Our investment is aimed at delivering a best-in-class tenant experience in a building with unparalleled accessibility across the city and region.”
60 Wall Street lobby
An artist’s depiction of the transformed lobby at 60 Wall Street, emphasizing the modern aesthetic and enhanced natural light, part of the $250 million renovation project.
Brindley also mentioned active negotiations with multiple tenants, each potentially leasing over 200,000 square feet. Asking rents for office space at 60 Wall Street range from $70 to $90 per square foot. The success of 60 Wall Street will be a key indicator of the Financial District’s resilience and its ability to attract major tenants in a competitive market. The transformation of this iconic tower is not just about updating a building; it’s about revitalizing an entire district.
60 Wall Stret terrace
Outdoor terrace space at 60 Wall Street, an amenity being added as part of the renovation to attract modern tenants seeking work-life balance and appealing office environments.
60 Wall Street restroom
Modern restroom design within 60 Wall Street, reflecting the comprehensive upgrade and attention to detail in the building’s $250 million renovation.
