The Real Deal New York

Siemens moving to Vornado’s 1 Penn Plaza

Company inked a 35K sf lease with an option to grow
January 02, 2018 04:10PM

Steve Roth and One Penn Plaza (Credit: Vornado)

Engineering and manufacturing firm Siemens is moving to Vornado Realty Trust’s One Penn Plaza.

The German giant signed a deal to take 35,000 square feet at the 57-story tower, with an option to expand to 60,000 square feet, Crain’s reported.

The $100 billion company agreed to pay rents in the high $60s per square foot, according to Crains.

Peter Van Duyne at Cushman & Wakefield represented Siemens in the deal, while Josh Glick and Jared Silverman negotiated on behalf of Vornado in-house. Siemens plans to make a move in July to the space, which was left vacant when the U.S. Customs Service relocated to 1 World Trade Center.

Vornado plans to combine One Penn Plaza and its neighbor at Two Penn Plaza into a 4.2 million-square-foot complex in order to attract higher-paying tenants as rents rise along the Far West Side.

The real estate investment trust, alongside Skanska and the Related Companies, is redeveloping the western annex of the Farley Post Office building, which will have more than 700,000 square feet of office space.

A source told Crain’s that several major tenants from “a variety of industries” have checked out the space. [Crain’s]Rich Bockmann