Change is afoot at Times Square, the city’s iconic neighborhood that now covers an area from Sixth Avenue to Ninth Avenue and 39th Street to 52nd Street.

Before the end of the month, Boston Properties, which owns 5 Times Square, is expected to announce the winning bidder for the 37-story, 1.1 million square-foot office tower that is leased to Ernest & Young. The winning bidder is expected to be Dubai-based Istithmar, which last week agreed to pay about $600 million for the 40-story, 905,000-square-foot office tower at 450 Lexington Ave., which is subject to a 99-year land lease, industry sources say. The seller is a joint venture of Murray Hill Properties, Westbrook Partners, and the Canadian pension plan SITQ.

In May 2002, what was then the accounting firm of Arthur Andersen opted out of its agreement to occupy space in Times Square Tower, the 48-story, 1.2 million-square-foot building at 7 Times Square and Broadway. A director at Cushman & Wakefield, Joanne Podell, said, “After more than three years of discussion, Ann Taylor Loft has signed a lease in the Times Square Tower. We expect the store to be profitable due to its location, hours of operation, and viability of retail in Times Square.”

Directly across the street is 1466 Broadway, also known as 6 Times Square. The 15-story, 298,000-squarefoot office building, built in 1907, houses a three-level Gap store. In November 2004, SL Green Realty sold the building, built for John Jacob Astor IV, to Sitt Asset Management and Steven Sutton for $160 million. The property, at the corner of 42nd Street and Broadway, was formerly the fashionable Knickerbocker Hotel that counted as its customers celebrities such as George Cohan and Enrico Caruso. The building was renovated into showrooms and offices in 1982.At the time of the purchase, the new owners indicated they had an interest in converting the top floors into a hotel or luxury condos. Trade sources indicate that an investor from the Middle East might be the winning bidder at a price of close to $1,000 a square foot.

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One of Manhattan’s most active investors, the Moinian Group, was part of a joint venture including the Chetrit Group and Edward Minskoff, that in May 2004 paid about $121 million, or $316 a square foot, for the 42-story, 382,000-square-foot office tower at 1450 Broadway and 41st Street. In November 2005, the owners announced plans to convert the top floors of the buildings into residential condominiums. Last month, the Moinian Group and its partner, MacFarlane Partners, opened the sales office for the Atelier, a 46-story, 478-unit condo tower at 635 W. 42nd St. This building is part of the first phase of a 1.5 million-square-foot mixed-use complex. The entire project will occupy most of the city block on the north side of 42nd Street between 11th Avenue and the Hudson River. The second phase will include about 300 residential condominiums and 350 rental apartments at 605 W. 42nd St. and 11th Avenue.

The co-president of the Durst Organization, Douglas Durst, said, “I never expected the Times Square and 42nd Street corridor to evolve as a center of office, retail, and residential.” Across the street from 1466 Broadway is 4 Times Square Tower, the 48-story, 1.6 million-square-foot building completed in 1999 by the Durst Organization. The office tower is leased to Conde Nast and the law firm of Skadden, Arps, Slate, Meagher & Flom. Adjacent to the building is One Bryant Park, also known as the Bank of America Tower. The building is being co-developed by the Durst Organization and Bank of America.

Last month, Bank of America committed to occupying an additional 522,000 square feet of space. The deal expands the bank’s occupancy to more than 77% of the space from 53%. The bank will lease about 1.63 million square feet of space, leaving about 450,000 square feet available. Mr. Durst said, “I don’t think we’ll have any trouble getting $100 per square feet at the top of the building. Right now we have at least 10 companies who are interested the space.”

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Last October, Equity Office Properties Trust closed on a $505 million purchase of the 41-story Verizon Building at 1095 Sixth Ave., which is across from the Bank of America Tower. Verizon kept about 200,000 square feet of the building as a condominium. Equity plans to spend about $250 million to renovate the tower. Office space is being marketed for rents of more than $1,000 a square foot.

According to industry sources, the 25-story, 227,000-square-foot Candler Building at 220 W. 42nd St. – at the heart of Times Square and home to a three-level McDonald’s – is in contract to be sold. The building was built in 1912-14 as a commission from Asa Candler, a founder of the Coca-Cola Company. West of the Candler Building is the 444-room Hilton Times Square. Last month, Sunstone Hotel Investors paid $242.5 million for that property. The seller was a partnership of Forest City Ratner and Hilton Hotels, who completed the hotel in June 2000.

Contracts for about 97% of the residential condominiums have been sold at the Orion, a development of Extell Investment Management and the Carlyle Group. The 58-story, 551-unit midblock building is at 350 W. 42nd St., west of the former McGraw-Hill Building. Extell Investment Management is assembling a site at 131-139 W. 45th St., directly behind the Muse Hotel on West 46th Street, The New York Sun has been told. It plans to develop a luxury hotel on the site.

Last month, Vornado Realty Trust wrote off $6.87 million it had spent on development costs for a project at the Port Authority Bus Terminal. Vornado had planned to use the air rights of the Port Authority to develop a 39-story tower atop the building on Eighth Avenue from 40th to 42nd streets.

As the Sun reported earlier this month, the Paramount Group has retained Douglas Harmon of Eastdil Secured to sell the 44-story, 1.1 million-square-foot building at 1540 Broadway, Bertelsmann’s American headquarters. Based on recent purchases, the property, built in 1990, might fetch $1.1 million, or $1,000 a square foot.

A 46-story, 250-unit residential condo tower is planned for the northwest corner of Eighth Avenue and 46th Street, with addresses of 301-307 W. 46th St. and 733-763 Eighth Ave. The owner, New Jersey-based SJP Properties, originally had planned to construct an 80/20 residential rental at 750 Eighth Ave., on the northwest corner of 46th Street, which was once home to McHale’s restaurant. Due to the strength of Times Square real estate, the company has decided to build a luxury residential condominium. SJP is also building a residential condominium at 45 Park Ave., on the site of the former Sheraton Russell.

On the corner of Eighth Avenue and 47th Street, a New York-based development company is planning to construct a 40-story luxury residential condominium. A third tower is planned for West 48th Street and Eighth Avenue.

A combination of factors, including creative tax subsidies and demand for more residential and office space in Times Square, has aided in the area’s resurgence.

Mr. Stoler is a television broadcaster and senior vice president at First American Title Insurance Company of New York. He can be reached at mstoler@firstam.com.