The Real Deal New York

NYC’s 10 biggest office leases signed in November

DC law firm Hogan Lovells took the most space last month in 206,720-square-foot deal
By Will Parker and Eda Kouch | December 06, 2016 08:34AM

From left: Steve Immelt, 390 Madison,787 Eleventh Avenue and Bill Ackman

From left: Steve Immelt, 390 Madison, 787 Eleventh Avenue (credit: 787 Eleventh Avenue) and Bill Ackman

What the office market lacked in blockbuster transactions in November it made up for in tenant diversity, with everything from a millennial mommy blog to an affordable housing investor taking space in this month’s top 10 leases list.

1) They can’t all go to Hudson Yards – 206,750 square feet

Although they first considered taking space at Hudson Yards, the D.C.-based law firm Hogan Lovells inked a lease at 390 Madison Avenue last month, a space nearly double the size of its current New York HQ at 875 Third Avenue. The law firm will take floors seven through twelve at the building, which is owned by the New York State Common Retirement Fund and Clarion Partners. Hogan Lovells won’t be moving there just yet, however. The building is not expected to be complete until sometime in 2018. L+L Holding Co. is leading the renovation and marketing of the property.

2) Don’t bet against Ackman at 787 Eleventh Avenue – 67,000 square feet

Pershing Square Capital Management, an investment vehicle of the Herbalife short-selling billionaire Bill Ackman, signed a 67,000-square-foot lease at 787 Eleventh Avenue on the Far West Side. Pershing is also an ownership partner in the redevelopment of the former Ford Motor Company building, alongside Georgetown Company. A CBRE team lead by Mary Ann Tighe brokered the office lease deal. As per Ackman’s wishes, the building will feature a tennis court on the roof. Occupancy is set for 2017.

3) “Fintech” firm moves to Minskoff space – 39,075 square feet

Arcesium, whose website describes it as a “post-trade technology and professional services firm,” signed a lease at Edward Minskoff’s 1166 Sixth Avenue for 39,075 square feet of space. A JLL team of Paul Glickman, Cynthia Wasserberger, Jonathan Fanuzzi and Diana Biasotti represented Minskoff on the deal, while Arcesium was represented by the CBRE brokers Timothy Dempsey, Roger Griswold and Munish Viralam. Minskoff owns more than 2 million feet of commercial space in Manhattan, according to CoStar.

4) Lit agency joins building where major tenants’ names mostly include the word “Capital” – 35,208

The literary and talent agency ICM Partners is moving to two floors at Equity Office’s 65 East 55th Street. The employees shouldn’t expect to talk shop in the elevators all that much. Other major tenants at the address, like King Street Capital and Eminence Capital, are mostly in finance. Newmark Grubb Knight Frank brokered ICM’s 35,208-square-foot lease. ICM is leaving the Crown building, which is converting to hotel and residential space.

5) Bank makes way for Bustle – 34,100 square feet

Credit Suisse is giving up some of its space at Columbia Property Trust’s 315 Park Avenue South to be filled by BDG Media, the parent company of women’s lifestyle websites Bustle and Romper, the latter of which is focused on millennial moms. Transwestern brokers Rory Murphy, Jonathan Tootell and Lindsay Ornstein represented BDG on the lease deal.

6) Delta Airlines clears three-year Queens contract for takeoff – 30,000 square feet

Delta Airlines, which is currently renegotiating its lease at LaGuardia Airport, settled the matter of its local office space last month with a new lease at 75-20 Astoria Boulevard in East Elmhurst, the Bulova Center. Delta will sublease part of the second floor from Visiting Nurse Service of New York. A Cushman & Wakefield team of Tara Stacom, David E. Green, Robert Kuppersmith, Marisa Karmitz represented the VNSNY. JLL’s Paul Ferraro, Deborah van der Heyden and Reid Berch represented Delta.

7) Affordable housing firm renews with Rudin – 20,233

Rudin Management renewed a 20,233 square-foot-lease with the Enterprise Foundation, an affordable housing investment company, at 1 Whitehall Street in the Financial District. Enterprise Foundation has held its space on the building’s 11th floor since 2008. The deal was a non-brokered, direct deal between tenant and landlord.

8) Trading Screen to move to One Penn Plaza – 19,994 square feet

Hedge fund software company Trading Screen is planning a move to Vornado Realty Trust’s One Penn Plaza. The new lease starts in February. Vornado itself is planning big moves for the office tower. Earlier this year the company announced it would combine a revamped One and Two Penn Plaza into a single megaplex.

9) Haver Analytics renews with Empire State Realty Trust at One Grand Central Place – 19,073 square feet

The numbers must have worked out for Haver Analytics. The analytics firm and the Empire State Realty Trust renewed a lease agreement for the entire 33rd and part of the 34th floors at the office tower at 60 East 42nd Street. Haver, which provides data for macroeconomic research and analysis, was represented by Daniel Horowitz, Jeffrey Peck and Gary Kerper of Savills Studley.

10) Construction firm renews at Gural family’s 247 West 37th Street – 13,675 square feet

Construction company Interior Building Services renewed a lease for 10 years on the 12th floor of Newmark Holdings’ 247 West 37th Street. Newmark Holdings’ vast Manhattan portfolio is managed by Jeff Gural’s son Eric and nephew Brian Steinwurtzel. Matthew Mandell represented the landlord in-house and Michael Morris of Newmark Grubb Knight Frank worked on behalf of the tenant.

Source: TRD and CoStar Group reporting for lease transactions with known tenants

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