Facebook signed a 78,000-square foot lease at Vornado Realty Trust’s 770 Broadway, expanding its footprint in the building to 513,000 square feet.
Vornado’s CEO Steve Roth announced the deal during an earnings call Tuesday, Commercial Observer reported. The real estate investment trust freed up the space by buying Kmart out of its lease for the floor Facebook is taking. The retailer will still occupy 82,000 square feet in the landmarked, 1 million-square-foot building in Midtown South.
The Real Deal reported last month that Vornado was working on clearing space in the building to allow Facebook to expand. The social media giant now has a total of 513,000 square feet.
On the call, Roth dismissed reports claiming he opposed federal funding for the Gateway tunnel project and called it “far and away the most important” infrastructure project for the New York region. He said he expects the New York commercial real estate market to stay “flat-ish” in 2018 amid a strong office market and struggling retail sector.