You won’t believe how much a city agency is paying for office space in a century-old building

The rent at 109 East 16th St. is expected to balloon to $112 per sf in the next 20 years

TRD New York /
Nov.November 22, 2016 08:06 AM
109 East 16th Street (credit: Google Maps)

109 East 16th Street (credit: Google Maps)

A city agency plans to spend more than $20 million a year to rent a bare-bones office building in Union Square — a price commensurate with modern buildings in Midtown and Downtown.

The city’s Human Resources Administration will renew its lease for 264,358 square feet at Gould Investors’ 109 East 16th Street, the New York Post reported. The building — constructed in 1909 — has a starting rent of $76.83 per square foot — but that’s expected to increase considerably over the next 20 years. After a planned renovation, the city will pay up to an additional $13.89 million, the Post reported. After the renovation, the rent will rise to $82.12 per square foot in June 2023, and then $91.15 per square foot from June 2023 to June 2028.

Compare that to Midtown South Class-B asking rents, which sit at the low $60s per square foot, according to JLL TRData LogoTINY.

In the last leg of the 20-year lease — 2033 to 2038 — the rent will jump to $112.28 per square foot. HRA employs more than 14,000 people and has a $9.7 billion annual budget.

The city’s Department of Citywide Administrative Services must approve the lease before it’s finalized. [NYP]Kathryn Brenzel 


Related Articles

arrow_forward_ios
Albert Laboz of United American Land with 430 West Broadway and 419 Broadway (Credit: Getty Images and rendering via YIMBY)

Laboz family plans 2 office developments
in Soho

From left: 1271 Sixth Avenue, 30 Hudson Yards, and 55 Water Street (Credit: Wikipedia)

Manhattan leasing activity up year-over-year while asking rents hit record high

Office rents in U.S. are going up — barely

From left: McCann Chairman & CEO Harris Diamond, Cohen Brothers Realty President & CEO Charles S. Cohen and 622 Third Avenue (Credit: Getty Images, Google Maps)

McCann inks 450K sf extension at Cohen Brothers’ 622 Third Ave

From left: One Manhattan West, Amazon CEO Jeff Bezos and One Court Square in Long Island City (Credit: Manhattan West, Getty Images, and Loopnet)

After LIC debacle, Amazon sizing up Brookfield buildings for new office: report

From left: 28 West 44th Street, 25 West 45th Street and 183 Madison Avenue with WeWork CEO Adam Neumann (Credit: Google Maps, APF Properties, and Getty Images)

WeWork signed four leases this week for its “headquarters” offering

Even with Midtown South’s slip, Manhattan posts record leasing volumes and asking rents in Q1: report

New batch of Manhattan office towers competing for elite tenants

arrow_forward_ios