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Publicis picks up temporary space at 1 Penn Plaza
Advertising firm took over space vacated by Direct Brands
UPDATED, 10:50 a.m., Feb. 13:Advertising giant Publicis has inked a deal for nearly 114,000 square feet of temporary space in the lower floors of 1 Penn Plaza.
The deal is for a temporary, five-year office assignment of lease: an unusual deal in which Publicis is picking up the tail end of another tenant’s lease rather than starting a new one with landlord Vornado Realty Trust. The firm will take over 113,947 square feet of space occupied by the media firm Direct Brands. Although the deal is not technically a sublease, it is essentially a transaction that accomplishes the same thing in that Publicis will accept the terms and costs economics of Direct Brands’ lease. The lease expires in 2019, at which point and Omnicom, with whom Publicis is in the process of merging, may look to consolidate their multimillion-square-foot office space portfolio that spreads across Manhattan and Long Island City. Asking rents were in the $50s per square foot.
“A transaction of this caliber, with such dynamic complexity, could not have been accomplished without the business savvy and financial acumen of many, so it was a true team effort of many professionals with a common goal,” Ken Ruderman of Studley, who along with Brad Wolk represented the former leaseholder in the deal, said in a statement to The Real Deal. “The deal was signed within 35 days of our client vacating their space and relocating to their new offices. Given the size of this transaction, it’s an outstanding achievement.”
Gordon Ogden of boutique leasing brokerage Byrnam Wood represented Publicis in the deal, while Glen Weiss represented Vornado in-house. [Crain’s] — Julie Strickland