SL Green’s 711 Third Avenue is the site of one of New York City’s biggest subleases this year so far.
Global recruiting agency Phaidon International is taking more than 71,000 square feet in a sublease with the Stagwell Group at the Midtown East office building, the New York Post reported. The company is nearly doubling the footprint it had down the street at 622 Third Avenue.
The sublease is for 10 years, according to the New York Business Journal. Cushman & Wakefield’s David Mainthow represented Phaidon, while a JLL team including Kip Orban and Kristen Morgan represented the Stagwell Group.
Phaidon’s chief executive said the move will allow the company to continue growing in the city. The firm has plans to hire another 200 employees, according to the Post, bringing its New York headcount to 500.
The 592,000-square-foot building was recently renovated to include new elevator cabs, larger windows and a three-level parking garage, according to the Post.
Connecticut hedge fund Ellington Management Group last year signed a lease to take nearly 20,000 square feet on the fifth floor of the building, which is only a short walk from Grand Central Terminal.
Manhattan’s office market is still struggling to find its footing in the rise of remote work. Availability in the borough reached 19 percent in the first quarter, according to Savills Research, the highest rate going back to the beginning of the century.
There were some positive developments last quarter, as asking rents ticked up 1.7 percent to $77.34 per square foot. But the office market still has a long way to go in its recovery.
Opportunities for subleasing remain available for tenants seeking not to have direct leases with landlords. According to Colliers data reported by the Business Journal, sublet availability rose in the first quarter by 860,000 square feet.
[NYP] — Holden Walter-Warner