Stefan Soloviev, inheriting his father Sheldon Solow’s prestigious real estate legacy, confidently predicted back in May at The Real Deal’s New York City Showcase + Forum that the iconic office building at 9 West 57th Street would soon reach full occupancy. Despite prevailing skepticism surrounding the commercial leasing market in New York City, Soloviev’s vision is rapidly materializing. Recent lease agreements totaling nearly 65,000 square feet have propelled the occupancy rate of 9 West 57th Street above an impressive 90 percent, signaling a significant triumph for the Soloviev Group and a beacon of resilience in the current market.
“Despite all the negativity about commercial leasing in New York City we are seeing a dramatic uptick in our activity at 9W,” Soloviev stated, underscoring the building’s remarkable performance. “As I’ve said time and time again we are heading to 100-percent occupancy and we will be there even sooner than I’ve said we would in the past.” This bold assertion highlights the accelerating momentum at 9 West 57th Street, contrasting sharply with broader market anxieties.
The newly secured leases involve prominent firms across diverse sectors. Mousse Partners, recognized as the investment arm behind Chanel, has committed to a substantial 33,000-square-foot space, encompassing the entire 43rd floor. This move represents a significant expansion for Mousse Partners, nearly doubling their previous footprint as they relocate from a smaller space on the 46th floor within the same building. Investment management company Pointstate Capital has also solidified its presence at 9 West 57th Street, leasing 20,000 square feet on the 37th floor. Completing the trio of major leases, Panco Management, a property construction and management firm, has signed on for 11,700 square feet on the 33rd floor. These significant leases underscore the continued allure of 9 West 57th Street as a premier business address in Manhattan.
CBRE’s Howard Fiddle acted as the representative for Soloviev Group in these transactions, facilitating these key deals that are pivotal to the building’s near full occupancy.
The 50-story skyscraper at 9 West 57th Street, with its distinctive sloped facade overlooking Central Park, has long held an esteemed position in the commercial real estate landscape. Constructed in 1974, the building’s prestige was further amplified by Sheldon Solow’s renowned selectivity in tenant selection, cultivating an aura of exclusivity. However, under Sheldon Solow’s management, this exclusivity contributed to a persistent vacancy rate that lingered around 50 percent. Solow reportedly prioritized maintaining high rents, even if it meant foregoing occupancy.
Stefan Soloviev acknowledged this contrasting approach, stating, “He did an amazing job putting different properties together. Running them, that’s where we clashed.” This hints at a strategic shift under Soloviev’s leadership, potentially focusing on occupancy and dynamic market adaptation.
While the success at 9 West 57th Street is undeniable, the broader New York City office market continues to grapple with challenges. The prevalence of work-from-home policies, accelerated by the pandemic, has significantly impacted office occupancy rates across the city. Recent data indicates that office occupancy in New York City was only at 48 percent during the week of July 26, based on Kastle Systems’ analysis of building access data. This context underscores the exceptional achievement of Soloviev Group in driving occupancy at 9 West 57th Street against prevailing market headwinds, demonstrating the enduring appeal of prime locations and proactive management in even the most challenging environments.
