Bank of America’s Bryant Park expansion is bigger than you thought

Financial giant took 127K sf at Grace Building along with HBO’s space

New York /
Jan.January 30, 2018 02:30 PM

1100 Sixth Avenue and Bank of America’s Brian Moynihan

Bank of America’s got the market on Bryant Park cornered.

The financial giant signed a lease for 127,000 square feet at the Grace Building overlooking the Midtown oasis, sources told The Real Deal. That, along with its deal next door at the HBO building, puts the bank’s expansion along the northwest corner of the park at more than 500,000 square feet.

BofA signed a 20-year lease for floors five through seven in the 50-story tower at 1114 Sixth Avenue owned by Brookfield Property Partners and the Swig Company, according to CompStak. The starting rent was in the high $70s per square foot, according to the data company.

A representative from Bank of America confirmed it signed the lease. A spokesperson for Brookfield could not be reached.

The deal is on top of the 386,000 square feet the Charlotte, North Carolina-based bank locked up next door late last year. Bank of America inked a deal in late December to lease the entire building at 1100 Sixth Avenue, as the New York Post originally reported.

The longtime home of HBO, 1100 Sixth sits across the avenue from Bank of America’s corporate headquarters at the Durst Organization’s One Bryant Park, and the expansion will allow the financial institution to consolidate other offices in Midtown into a corporate campus centered around the corner of 42nd Street and Sixth Avenue.

Brookfield and the California-based Swig Co. – not to be confused with Kent Swig’s New York-based Swig Equities – bought the long-term leasehold on 1100 Sixth in early 2017 from Eugene A Hoffman Management. The owners are planning a major renovation of the building coinciding with HBO’s move to 30 Hudson Yards in 2019.

Companies in the financial services, insurance and real estate industries – known by the acronym FIRE – drove leasing activity in the office market in 2017 on the heels of strong job growth.

Those companies saw employment in New York City grow 3.7 percent year-over-year in 2017, finally pushing the sector’s employment figures above the pre-recession peak, according to CBRE. By contrast, companies in the technology, advertising, media and information sectors – which had driven office-leasing activity through most of the economic recovery – saw employment gains taper off to 1.6 percent last year, down from the robust annual growth rate of 3 to 4 percent seen earlier in the expansion.

At least some of the job gains in the FIRE sector, however, appear to be tech-related jobs instead of traditional banking ones. JPMorgan Chase, for example, inked a 300,000-square-foot deal last year at Brookfield’s 5 Manhattan West to expand its financial technology group.

Elsewhere, JPMorgan is in talks to lease the remaining 400,000 square feet at L&L Holding Company’s 390 Madison Avenue, though it’s not clear what job functions will be housed in the space.


Related Articles

arrow_forward_ios
Freshly CEO Michael Wystrach and 28 East 28th Street (Photos via Twitter; Google Maps)
Freshly inks big lease in NoMad
Freshly inks big lease in NoMad
From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
Former SL Green exec Isaac Zion joins Acram Group
Former SL Green exec Isaac Zion joins Acram Group
(Photo illustration by The Real Deal)
Inside mall owner Namdar’s rapid growth story
Inside mall owner Namdar’s rapid growth story
15 Park Row (Google Maps)
J&R Music founders sell Park Row apartment tower for $140M
J&R Music founders sell Park Row apartment tower for $140M
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Gov. Andrew Cuomo (Getty)
Industry reacts to Cuomo’s proposed commercial eviction ban
Industry reacts to Cuomo’s proposed commercial eviction ban
Merchants Hospitality Inks Club Deal at Cachet Hotel (Google Maps, Playboy Club)
Nightlife veteran John Blair inks deal for Hell’s Kitchen club
Nightlife veteran John Blair inks deal for Hell’s Kitchen club
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
arrow_forward_ios

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

Loading...