The Real Deal New York

Short-term office firm and RE database ink leases at 1185 Sixth

Real estate-related companies Emerge212 and Reis take a combined 100K sf

June 20, 2016 04:00PM
By Rich Bockmann

1185 Sixth Avenue and SL Green's Steven Durels

1185 Sixth Avenue and SL Green’s Steven Durels

UPDATED, June 21, 10:00 a.m.: A pair of real estate-focused tenants signed deals for nearly 100,000 square feet at SL Green Realty’s 1185 Sixth Avenue.

Emerge212, SL Green’s short-term workspace subsidiary, signed a lease for 55,292 square feet on the second and third floors of the 1 million-square-foot building.

The company, launched in 1999, already has locations at two other SL Green buildings at 3 Columbus Circle and 125 Park Avenue, as well as one at 28 West 44th Street, which the landlord previously owned.

Emerge212 director James Kleeman said that – aside from the obvious synergies of leasing space in the parent company’s building – the company’s short-term clients are looking for space in the kind of Class A office properties that make up most of SL Green’s office portfolio.

“Our greatest competition is direct space,” Kleeman said. “The prospects that are touring us are considering a five- or 10-year lease or a sublet.”

Asking rents in the 42-story building range from $70 to $90 per square foot, according to SL Green.

In another deal, the commercial real estate database Reis Services signed a sublease on the building’s upper floors to relocate its headquarters from nearby at 530 Fifth Avenue.

Reis is subleasing 44,278 square feet on 30th and 31st floors through 2025 from the law firm King & Spalding, which is retaining a portion of its footprint on the 31st floor.

The company was attracted to the turn-key space in part because it comes fully furnished, a source said.

Dan Horowitz, Jeffrey Peck and Gary Kerper at Savills Studley represented Reis in the deal. Adam Ardise, Richard Bernstein and Bryan Boisi of Cushman & Wakefield handled the transaction on King & Spalding’s behalf.

“Reis was seeking new space in Manhattan to serve its growing footprint,” Horowitz said.  “The advantages offered by this long term sublease included a functional space that had tremendous value already embedded, coupled with a full concession package that allowed Reis to refine the workplace to its exact requirements.”

This post was updated to include a statement from Horowitz.

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