The Real Deal New York

StreetEasy inks lease for 130K sf at
Global Holdings’ 1250 Broadway

Listings portal will leave 53K sf digs at 130 Fifth next year
By E.B. Solomont | October 22, 2018 08:55PM

Susan Daimler and 1250 Broadway

Zillow Group is doubling down on New York City.

The Seattle-based listings giant has inked a deal to expand its footprint to 130,000 square feet — up from 53,000 square feet, a spokeswoman for the company confirmed. The company said it had leased five floors at Global Holdings’ NoMad Tower, located at 1250 Broadway. Zillow plans to move from its current digs at 130 Fifth Avenue in the Flatiron District sometime next year.

Between its three brands — StreetEasy, Naked Apartments and Out East — Zillow Group currently has 270 New York City employees.

But it’s been staffing up as it seeks to monetize those brands, specifically StreetEasy, which it acquired for $50 million in 2013.

In 2017, Zillow expanded its massively profitable Premier Agent advertising program to StreetEasy. Around the same time, StreetEasy initiated a $3-a-day fee to post rental listings, which drew the ire of agents — many of whom ultimately acquiesced to the new model.

Most recently, Zillow announced changes to Premier Agent this summer, when its own sales reps began screening buyers before passing off leads to agents who advertise on its platform.

Eyal Ofer’s Global Holdings bought 1250 Broadway for $565 million in 2016. The company rebranded the 39-story, 720,000-square-foot tower last year, and tapped JLL’s Paul Glickman to head up leasing. At the time, asking rents for the large blocks ranged from $78 to $82 per square foot.

Zillow will occupy floors eight through 12, a spokeswoman said.