510 Madison Avenue

Another commercial office project in Midtown that's seeking LEED certification may be in trouble. After last week's news that Boston Properties had suspended work at its LEED Gold hopeful 250 West 55th Street after potential anchor tenant Proskauer Rose balked at further lease negotiations, Macklowe Properties now may face the same scenario after rumors surfaced earlier today that the sole tenant it had inked at its LEED Gold hopeful 510 Madison Avenue may be close to exercising an escape clause in its lease. Crain's reported today that investment firm Jay Goldman & Co., which signed a 10-year lease for 11,500 square feet across the 30-story tower's 19th floor at $150 per square foot in December of 2007, is close to backing out of the deal thanks to a number of opt-out clauses in its lease with Macklowe. According to Newmark Knight Frank principal William Cohen, who handles leasing at Jay Goldman's current home at the Carnegie Hall Tower at 152 West 57th Street, "[i]t is all set for them to stay [at 152 West 57th Street]. Our arrangement is done."

• Frank Gehry out as architect for LEED Silver hopeful theater at BAM Cultural District in Fort Greene
• Vinoly's Brooklyn Children's Museum on track to open up this fall, achieve LEED Silver
• Borough president James Molinaro calls for wind power at Fresh Kills landfill in Staten Island
• Macklowe, Tishman top out LEED Gold hopeful 510 Madison Avenue
• In pursuit of LEED Gold, first panes of glass installed at 11 Times Square

Yesterday was not a good day to be a green building under construction in Midtown. First, Steve Cuozzo reported in the Post that Macklowe Properties' 510 Madison Avenue, which is currently pursuing a LEED Gold rating from USGBC, has received a partial stop-work order from the Department of Buildings. Later in the morning, a 5 ' by 13' panel of glass fell from the 51st floor of Cook + Fox's LEED Platinum hopeful Bank of America Tower. The panel landed on sidewalk bridging across 42nd Street (where the former Verizon Building continues to undergo a number of green retrofits), shattering and sending one person to Bellevue. A number of streets around the project were closed while the fire department investigated the incident. Tishman Construction is serving as the construction manager for both of the projects

Although the local real estate market has certainly cooled in the past few months, leasing activity at two of Midtown's highest profile green commercial projects continues to remain hot. Marathon Asset Management, which agreed to pay $115 per square foot for the 38th and 39th floors at LEED Platinum hopeful Bank of America Tower in early 2007, recently agreed to a 5-year sublet for a portion of its space with Korean financial firm Mirae Asset for $150 per square foot. Although Marathon isn't the only financial services firm that's looked to shed space in light of current market conditions, it's a good sign that demand is still strong for premium Class A space, though whether One Bryant Park's green features are driving the significant lease premium is obviously pure speculation.