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Landlords entice tech tenants with expansion options

Firms ink leases at buildings they have room for growth

From left: 1375 Broadway and 740 Broadway
From left: 1375 Broadway and 740 Broadway

Tech companies have specific requirements when looking to lease, namely, the option for more space, and the city’s landlords are willing to oblige this need to lure them to their buildings.

Take, for instance, the Muse, an online career resource that was shopping for office space. The firm ended up at Westbrook Partners’ 1375 Broadway, taking 18,000 square feet.

Muse committed to the entire 20th floor space at the 24-story, over 460,000-square-foot building because it has the option to take another full floor to double its space, Crain’s reported.

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Westbrook bought the building from Savanna for $310 million last summer. Asking rent is $65 per square foot, Crain’s reported.

“They’re growing rapidly, so the ability to continue to expand if they need more space was a significant factor in their decision where to move,” Dennis Someck of Lee & Associates told Crain’s. Someck and colleague Justin Myers represented Muse for the 10-year lease. CBRE’s Paul Amrich and Neil King represented Westbrook.

The Muse is looking to nearly triple its space in Manhattan and currently has 6,500 square feet at 151 West 25th Street.

Someck also brokered other deals for tech firms that included the option to double space. Digital market research firm L2 recently exercised its expansion option, upping its 12,500 square feet at the 12-story, over 310,000-square-foot 740 Broadway to around 25,000 square feet, Crain’s reported. [Crain’s]Dusica Sue Malesevic

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