Time Equities gives huge rent break to gov’s office, city agency

CEO dropped price from $85 to low $60s per sf to get big tenants to re-sign
August 05, 2013 09:30AM

Time Equities is giving a sweet deal to two of its Midtown East tenants, saving millions of dollars in rent for the governor’s office and the city of New York, Crain’s reported.

The governor’s office and the city’s Empire State Development Corp. have renewed leases in the 40-story Time Equities building at 633 Third Avenue, on the corner of Third Avenue and East 41st Street.

The state inked a lease for 40,000 square feet over two  floors and the city is keeping 104,000 square feet over five floors, according to CompStak data seen by the Wall Street Journal.

Each lease is for 10 years and the price for each tenant is the low $60s per square foot,  compared with the $85 it had been before the renewal, according to CompStak. The deals will save millions of dollars each for the governor’s office and the city, their spokesmen told the Journal.

Time Equities had considered selling the top 10 floors of office condominiums last year because it wasn’t certain whether the state and the city would stay after their leases expired, Time Equities’ CEO Francis Greenburger told the Journal.

Greenburger reduced the rent to increase the appeal of the space, he added. “We liked having them as [tenants] and wanted to keep them,” he said. [Crain’s] and [WSJ]  – Hiten Samtani