Kramer Levin staying put on Sixth Avenue

Law firm renews its 265K sf at 1177 Sixth after exploring move to Far West Side

New York /
Feb.February 13, 2017 11:45 AM

Kramer Levin, which had considered relocating its offices to the Far West, decided to stay put and consolidate its footprint on Sixth Avenue.

The law firm signed a 15-year lease for 265,000 square feet at Silverstein Properties 1177 Sixth Avenue, the Wall Street Journal reported. That’s about 50,000 square feet less than it now occupies.

Law firms can operate out of less space than they used to require, in part because law libraries are now housed online, and lawyers need fewer assistants than they once did.

“Businesses can be very healthy and vibrant and they’re still taking 10 percent less space to accommodate the same number of employees,” said Newmark Grubb Knight Frank’s Moshe Sukenik, who represented Kramer Levin in negotiations.

Kramer Levin had considered moving west to buildings at the Related Companies and Oxford Properties Group’s Hudson Yards and Brookfield Property Partners’ Manhattan West. Such a move would add to fears that tenants are abandoning Sixth Avenue, but a number of tenants have recently decided not to leave Midtown.

UBS Group AG, 21st Century Fox and Fox News have renewed their leases, and Major League Baseball signed a lease at 1271 Sixth Avenue.

Sixth Avenue and Rockefeller Center had an availability rate of 12.4 percent in January, down from 13.5 percent in the fourth quarter of 2016, according to Newmark data.

Silverstein and the California State Teachers’ Retirement System bought the 1 million-square-foot tower at 1177 Sixth Avenue in 2007 for about $1 billion. UBS Global Asset Management bought a stake in the property in 2014.

A spokesperson for Silverstein said the building is 95 percent occupied with tenants such as Bank Hapoalim and the Practicing Law Institute. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
From left: Tishman Speyer CEO Rob Speyer, KKR co-founder Henry Kravis, and a rendering of 341 Ninth Avenue (Getty, Tishman Speyer)
KKR dumps Manhattan office plans
KKR dumps Manhattan office plans
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
David Zwirner and Elijah Equities principal Hiram Haddad with 520 West 20th Street in Manhattan NYC (Wikipedia, Elijah Equities, Google Maps)
David Zwirner adds office space in Chelsea
David Zwirner adds office space in Chelsea
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
Photo illustration of Amazon’s Jeff Bezos and Meta’s Mark Zuckerberg (Illustration by Kevin Rebong for The Real Deal)
Big tech’s downsizing spells office market retreat
Big tech’s downsizing spells office market retreat
arrow_forward_ios

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

Loading...