Cohen dismisses portfolio vacancy worries

February 01, 2012 12:00PM

Despite the recent departure of the American Society of Mechanical Engineers from 100,000 square feet at 3 Park Avenue, followed by the exit of Guggenheim Partners from 137 East 57th Street, landlord Charles Cohen said he’s not concerned about growing vacancy levels in his Manhattan portfolio, the New York Observer reported.

“I think as owners we have to be independent, you can’t just run and scramble to keep every tenant,” Cohen said of society’s decision to leave. “In that case, I looked at the building and asked myself, am I really best suited incurring the cost of renewing that deal two years early when maybe the market will be a lot better in a year or so?”

Cohen added that Guggenheim had also not been a great fit for the East 57th Street building.

“We really didn’t have the space nor the size floors for a mushrooming company like them,” he said. “It comes to a point of efficiency and 135 East 57th Street is more of a boutique building suited for a smaller tenant.”

Cohen tapped Bruce Mosler and Arthur Mirante of Cushman & Wakefield to head up leasing for his Manhattan portfolio in 2010, the Observer noted. [NYO]