Dewey & LeBoeuf delivers another blow to Midtown’s office market

New York /
May.May 07, 2012 12:30 PM

What do law firm Dewey & LeBoeuf’s problems mean for the Midtown office market? The Wall Street Journal reported that if the firm were to close, it would flood the neighborhood’s office leasing market with almost 500,000 square feet of space — even as it already maintains an increased vacancy rate.

As The Real Deal reported, Dewey has lost dozens of its 300 partners so far this year, including Stuart Saft last week, and faces declining earnings and internal conflict over compensation policies.

Midtown’s Class A sublease vacancy for April increased to 5.27 million square feet from December’s tally of 5.1 million square feet, according to the Journal. Dewey leases approximately 470,000 square feet at the Paramount Group’s 1301 Sixth Avenue between 52nd and 53rd streets. Sources told the Journal that Dewey has already offered up its 40,000-square-foot executive floor for sublease and that over 12 potential tenants, including other law firms with expiring leases, have considered the offices.

As previously reported, Dewey enlisted Newmark Grubb Knight Frank to find a sublet for 160,000 square feet of its office space. [WSJ, 2nd item]


Related Articles

arrow_forward_ios
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
Real Estate EFTs See Investment Amid Pandemic Recovery
Why investors are rushing into real estate ETFs
Why investors are rushing into real estate ETFs
Manhattan sublease surge shows signs of slowing
Manhattan sublease scourge finally abates
Manhattan sublease scourge finally abates
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
Distressed real estate investors are digging through commercial mortgage-backed securities to seize, fix and flip troubled properties. (iStock)
Distressed investors tap throwback strategy, target CMBS
Distressed investors tap throwback strategy, target CMBS
President Joe Biden (Getty, iStock)
What Joe Biden’s infrastructure plan holds for real estate
What Joe Biden’s infrastructure plan holds for real estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...