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Nevertheless, industrial conversions tend to rent briskly because rents are more competitive than those of the first-class buildings, said Jack Britvan, president of American Corporate Realty in Woodbury.
Anthony Malkin, president of W&M Properties in Manhattan, which owns Merritt View, a 250,000-square-foot Class A office building farther south on Route 7, said: "The market strongly favors first-class buildings from White Plains to Norwalk.
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"When can you get a first-class building on Park Avenue with 83,000-square-foot floors?
Affordable housing advocates have accused luxury condominium developers on Williamsburg's north side of segregating affordable units in second-class buildings.
Nonetheless, the governor continues to say that he is open to any plan that expands the Javits Center, which is widely derided as an out-of-date, second-class building unworthy of its city.
Landlords at prime office buildings were getting more than $100 a square foot annually, while the average rents for first-class Midtown buildings rose to $73.31 by the first quarter of 2007 from $55.21 in the first quarter of 2005, according to Reis Inc., a New York office research company.
While some investors will probably be drawn to the romantic notion of owning a piece of the fabled skyscraper, some analysts note that the building and several of the other properties included in the REIT are not viewed as modern, first-class office buildings.
De Botton concluded that modern architecture's problem wasn't that it was incapable of making people happy but that most people — especially in Britain — had too few opportunities to experience first-class modern buildings that aren't museums, offices, or airports.
First-class existing buildings are priced to yield only around 5% to an all-cash buyer, says research firm Green Street Advisors.
But L & L Holding bought the 850,000-square-foot building for $480 million in May with a plan to turn it into a first-class office building.
He announced that he would spend an additional $170 million to transform the landmark into a first-class office building.
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