Advertising giant Deutsch will renew its lease for 100,000 square feet at 111 Eighth Avenue, the New York Observer reported. This further derails Google’s plans to expand in the 3 million square-foot building it bought at the end 2010 for a record $1.8 billion.
Google had been in talks to pay the ad firm, owned by Interpublic Group, to choose not to exercise its option to renew. Deutsch had considered inking a lease at 11 Madison Avenue, the Observer said.
The lease term for the renewal was not known.
This blow to Google’s plans to expand its office space comes just weeks after Google’s talks with Nike, another large tenant at the Chelsea behemoth, also fell apart. [NYO]