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The Downtown office market is in even worse shape than widely reported data indicate, according to several major dealmakers.

One of them, an industry legend not given to doom-and-gloom scenarios, told us that huge amounts of space are quietly up for sublease even at the World Trade Center and Brookfield Place Lower Manhattans best-performing properties.

Most brokerage firms cite FiDi-area availability including space currently vacant or soon to be — at between 20% and 23%, compared with around 16% uptown. But so-called shadow space cited by the market insider could raise the total much higher.

Not every building is in trouble. The districts grim overall data are skewed by two particular enormous properties Paramount Groups transitioning 60 Wall Street, where most of 1.6 million square feet are yet to be leased, and 111 Wall Street, an entirely empty 1 million square-foot address thats now in foreclosure.

But other struggling buildings are also on the downbound train, such as 40 Wall Street. The landmark tower is about 30% empty and its plight will likely worsen as the Trump Organization skyscraper is at risk of seizure by state attorney general Letitia James.

Even more vulnerable are Downtowns large number of pre-war, Class B-minus buildings that few tenants want at any rent and which cant easily convert to residential use.

Yet hope might be on the way. According to VTS, the national real estate technology platform that uses AI to monitor and interpret market office-space tours — look-sees by companies eyeing a move or expansion have recently been higher Downtown than in Midtown or Midtown South.

Lower Manhattan saw 40% more so-called tire-kicking visits in the months of December 2023 through February 2024 than it did between September and November 2023.

A 43% increase in tours month over month easily beat Midtowns 25% and Midtown Souths 11%, according to VTS. Much of the tenant interest Downtown was by companies seeking 50,000 square feet or more.

VTS chief strategy officer Ryan Masiello said, I think generally, companies are starting to realize were at the bottom of the market right now. More companies are exploring to try to take advantage of lower rents, especially downtown, he said.

But one highly accomplished downtown market-watcher was skeptical of VTS findings.

They can only be true if theyre including the smallest users. It definitely is not true of tenants looking for more than 20,000 square feet, the insider said.

Manhattan leasing in all submarkets hit the mute button in the first quarter, according to Savills which cited a dearth of large deals.

The first quarters 6.8 million sf of transactions was 6.6% lower than in the first three months of 2023, Savills said.

Interestingly, three of the largest office deals were renewals and/or expansions by major retailers — including for Michael Kors, Burlington Stores and David Yurman, which tallied a total of nearly a half-million square feet.

At least one major landlord saw some positive news. At SL Greens 485 Lexington Ave., four recent new leases and one renewal totalled 64,303 square feet.

Leasing director Steven Durels said, Our recent success at 485 Lexington confirms that well-located buildings are experiencing increased tenant demand.

In the two largest new leases, RSC Insurance Brokerage took 27,964 square feet on the entire 17th floor and Exponent, Inc., an engineering and scientific consulting firm, took 14,383-square feet on the 22nd floor.

Smaller deals include capital markets company William ONeil & Co. for 4,797 square feet and Graham Holdings Company signed for 3,006 square feet.

In addition, Tegna, Inc., a broadcast, digital media and marketing services company, renewed its 14,078-square-foot lease on the 27th floor.

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Israel and Syria agree to ceasefire, says US ambassador to Turkey

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Israel and Syria agree to ceasefire, says US ambassador to Turkey

Israel and Syria have agreed to a ceasefire, the US ambassador to Turkey has said.

Several hundred people have reportedly been killed this week in the south of Syria in violence involving local fighters, government authorities and Bedouin tribes.

As the violence escalated in the southern province of Sweida, Israel launched airstrikes, including attacks on Wednesday on the defence ministry in Damascus and a target near the presidential palace.

Israeli Prime Minister Benjamin Netanyahu’s government said it aimed to protect Syrian Druze – part of a small but influential minority that also has followers in Lebanon and Israel.

Clashes between Bedouin and Druze groups further tensions in the Middle East

In a post on X, the US ambassador to Turkey, Tom Barrack, said Israel and Syria had agreed to a ceasefire supported by Turkey, Jordan and others.

“We call upon Druze, Bedouins, and Sunnis to put down their weapons and together with other minorities build a new and united Syrian identity,” Mr Barrack said in a post on X.

The Israeli embassy in Washington and Syrian Consulate in Canada did not immediately comment or respond to requests for comment from the Reuters news agency.

The ceasefire announcement came after the US worked to put an end to the conflict, with secretary of state Marco Rubio saying on Wednesday that steps had been agreed to end a “troubling and horrifying situation”.

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Why is Israel bombing Syria?

After Israel warned it would destroy forces attacking Syrian Druze, Syrian President Ahmed al Sharaa told the minority group in a televised statement on Thursday that “we reject any attempt to drag you into hands of an external party”.

He then claimed Israel has “consistently targeted our stability and created discord among us since the fall of the former regime”.

It comes after the United Nations’ migration agency said earlier on Friday that nearly 80,000 people had been displaced in the region since violence broke out on Sunday.

It also said that essential services, including water and electricity, had collapsed in Sweida, telecommunications systems were widely disrupted, and health facilities in Sweida and Daraa were under severe strain.

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Trump sues Wall Street Journal and Rupert Murdoch for $10bn after Epstein letter report

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Trump sues Wall Street Journal and Rupert Murdoch for bn after Epstein letter report

Donald Trump has filed a lawsuit against Rupert Murdoch, two Wall Street Journal reporters and the publication’s owner, News Corp.

The US president has accused the named individuals of defamation, claiming they acted with malicious intent and caused him overwhelming financial and reputational harm.

The lawsuit, which was filed in Miami, seeks at least $10bn (£7.5bn) in damages.

In a post on Truth Social, Mr Trump called the lawsuit “historic legal action” which was filed on behalf of himself and all Americans who he said will “no longer tolerate the abusive wrongdoings of the Fake News Media”.

“I hope Rupert and his ‘friends’ are looking forward to the many hours of depositions and testimonies they will have to provide in this case,” he wrote.

It comes after Mr Trump claimed that a letter he allegedly wrote to paedophile Jeffrey Epstein was “fake” and said he would sue the “ass off” Rupert Murdoch, who owns the Wall Street Journal (WSJ), which first published the story.

The publication had said Mr Trump wrote the letter as part of a collection Epstein’s former girlfriend, Ghislaine Maxwell, planned to give him as a 50th birthday present in 2003.

It claimed the message, allegedly from Mr Trump, featured several lines of typewritten text, concluding with: “May every day be another wonderful secret.”

The text was framed by what appeared to be a hand-drawn outline of a naked woman, the WSJ claimed. The letter is also said to have featured the signature “Donald”.

Mr Trump immediately denied writing the letter when the WSJ report was published on Thursday night.

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Memes of Epstein undermine victims, says lawyer

“The Wall Street Journal printed a FAKE letter, supposedly to Epstein,” he wrote on Truth Social.

“These are not my words, not the way I talk. Also, I don’t draw pictures. I told Rupert Murdoch it was a Scam, that he shouldn’t print this Fake Story. But he did, and now I’m going to sue his ass off, and that of his third rate newspaper.”

Mr Trump ignored questions about Epstein as he signed a cryptocurrency bill at the White House earlier on Friday.

The president’s lawsuit comes as the US government filed a motion to unseal grand jury transcripts related to Epstein, who took his own life while awaiting trial in 2019.

In a Manhattan federal court filing, the Department of Justice said the criminal cases against Epstein and Maxwell are a matter of public interest, justifying the release of associated grand jury transcripts.

Earlier on Friday, Mr Trump said attorney general Pam Bondi had been asked to release the transcripts because of “the ridiculous amount of publicity given to Jeffrey Epstein”.

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The justice department previously said it had around 200 documents relating to Epstein and that the FBI had thousands more.

It is unknown how much of this is grand jury testimony, which is typically kept secret under US law.

Read more:
All we know about the ‘friendship’
Trump denies writing birthday letter to Epstein

The president has faced increased scrutiny over his alleged friendship with Epstein since his administration’s U-turn on the so-called ‘Epstein files’.

Mr Trump pledged to release files on Epstein during his presidential campaign, as his MAGA movement accused the Biden administration of suppressing the extent of Epstein’s paedophilia, predatory behaviour and his so-called “client list” – thought to contain names of the rich and famous who conspired with him in his child sex trafficking operation.

But after a review of the evidence the US government has, the Justice Department recently determined that no “further disclosure would be appropriate or warranted”.

Venezuela releases jailed Americans in prisoner swap

The Trump administration said on Friday that it had negotiated an exchange with Venezuela, resulting in the release of 10 jailed Americans.

US secretary of state Marco Rubio said the prisoners, who had been held in the South American country, were “on their way to freedom”.

Alleged gang members imprisoned in the CECOT jail in EL Salvador. Pic: Reuters
Image:
Men in the CECOT jail in EL Salvador. Pic: Reuters

In return, 252 Venezuelan migrants being held in El Salvador have been freed, the Venezuelan government said.

They had been held in the notorious maximum security CECOT prison after being deported by the US.

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Sports

NASCAR nixes ’26 Chicago race, eyes ’27 return

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NASCAR nixes '26 Chicago race, eyes '27 return

CHICAGO — NASCAR is pressing pause on its Chicago Street Race, answering at least one major question about its schedule for next season.

NASCAR raced on a street course in downtown Chicago on the first weekend in July each of the last three years. But it had a three-year contract with the city, leaving the future of the event in question.

Writing to Mayor Brandon Johnson on Friday, race president Julie Giese said the plan is to explore the potential of a new event weekend with his office and other community leaders while also working on a more efficient course build and breakdown.

“Our goal is for the Chicago Street Race to return in 2027 with an event that further enhances the experience for residents and visitors alike, as we work together towards a new potential date, shorter build schedule, and additional tourism draws,” Giese wrote in her letter to Johnson.

Giese said NASCAR is keeping its Chicago Street Race office and plans to continue its community partnerships.

“We deeply value our relationship with the City of Chicago and remain steadfast in our commitment to being a good neighbor and partner,” she said in the letter.

NASCAR is replacing its Chicago stop with a street race in San Diego.

A message was left Friday seeking comment from Johnson’s office.

NASCAR’s Chicago weekend featured Xfinity and Cup Series races on a 12-turn, 2.2-mile course against the backdrop of Lake Michigan and Grant Park – to go along with a festival-like atmosphere with music and entertainment options.

The goal was an event that appealed to both a new audience in one of NASCAR’s most important regions and the most ardent racing fans. NASCAR used to race at Chicagoland Speedway in Joliet, a 45-mile drive from downtown, but it pulled out after the 2019 season.

Johnson’s predecessor, Lori Lightfoot, was in charge when the three-year contract for the downtown weekend was finalized.

It wasn’t exactly a popular move in Chicago. Local businesses and residents were frustrated by the street closures in a heavily trafficked area for tourists in the summer. But organizers shrunk the construction schedule from 43 days in 2023 to 25 this year, winning over some of the race’s critics.

Drivers and their teams had some concerns about the course ahead of the first weekend. But the setup was widely praised by the time the third year rolled around – both the course and the ability to walk to the circuit from their downtown hotel.

Hendrick Motorsports driver Kyle Larson called Chicago “probably my favorite event in NASCAR each year.”

The racing in downtown Chicago has been dominated by Shane van Gisbergen, who won the Xfinity and Cup races this year from the pole. He also won in Chicago in his Cup debut in 2023 and last year’s Xfinity Series race.

“I love the track,” he said after this year’s Cup win. “It’s a cool place to come to. You feel a nice vibe. You feel a good vibe in the mornings walking to the track with the fans. It’s pretty unique like that.”

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