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GlobeSt.com EXCLUSIVE: Upgrades Will Hike Rents at 711 Fifth to $70 per SF

NEW YORK CITY-Grubb & Ellis and building owner Coca-Cola aren't talking numbers. But GlobeSt.com has learned that major upgrades to 711 Fifth--owned by Coke--will reap major rental revenue hikes over the next decade.

By John Salustri | Updated on April 12, 2002

NEW YORK CITY-What began as a straightforward leasing RFP has blossomed into a multi-million-dollar asset repositioning for 711 Fifth Ave., the 326,000-sf office building owned by Coca-Cola. And while neither executives at Grubb & Ellis nor their newly won client are talking dollars, sources tell GlobeSt.com that building renovations that should tally roughly $3 million will produce some $25 million in rent increases over the next decade as leases are renegotiated or retenanting kicks in.

Current tenants, which include such names as Allen & Co., SunTrust, the National Geographic Society and Loews Cineplex, may be looking at rents rising from roughly $59 per foot to as much as $70, sources say. Coke is also a tenant in the 75-year-old building, maintaining its New York HQ there.

“There are always opportunities that come from existing tenants to free up space they are currently occupying,” says one observer. “They might be interested in leaving the building a little earlier. That will give management the opportunity to achieve its highest rent levels.”

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