New York State renewed two large office leases for a total of 71,751 square feet in Harlem, taking advantage of a weak market to renegotiate and extend the terms.
The state’s Workers’ Compensation Board renewed 45,205 square feet on the fourth and fifth floors of 215 West 125th Street and the state’s Department of Labor took 26,546 square feet on the fourth floor of the same building, Arthur Stern, CEO of building owner Cogswell Realty, said.
The six-story, 170,841-square-foot Building Near Adam Clayton Powell Boulevard was built in 1971, according to data from PropertyShark.com.
The landlord provided a rent reduction in exchange for re-signing the leases — initially set to expire in a year and a half — for another 10 years, a source close to the deal said.
Both leases were renewals for 10 years and were finalized last week, with an asking rent of $36 per square foot, Stern said.
“We were delighted that we were able to accommodate the State of New York in restructuring their existing lease, and extending the term,” he said.
Both leases were direct deals with the state, with Cogswell represented by Stern and partner Ross Jacobs.
Cogswell has done a lot of work with the state, recently brokering the renewal of 480,708 square feet of leases Downtown at 60 Broad Street at Beaver Street for five New York state agencies.
The rent reductions were part of an effort by the state to cut rent payments.