Big office lease finally in works at 1 New York Plaza

It might be an old city staple that finally shakes the office leasing market out of its nearly year-long slumber.

The New York Post reported that Morgan Stanley has advanced “beyond the term-sheet stage” in negotiations to convert its 800,000 square feet at One New York Plaza, which it currently subleases from Wells Fargo, to a direct lease. What’s more, Morgan Stanley wants to add another 300,000 square feet to its footprint.

That’s welcome news for landlord Brookfield Office Properties, which is working to fill the 24.5 percent of the 2.6 million-square-foot tower that is unoccupied.

But it’s also a good sign for the office leasing industry as a whole.

“Everyone’s waiting on this one,” said a broker who’s not involved in the negotiations cited by the Post. “It’s great that downtown now has media companies and other kinds that aren’t ‘Wall Street’ — but it’s nice to know financial firms still want to stay there and grow.”

Brian Waterman of Newmark Knight Frank is Morgan Stanley’s lead broker in the deal. [Post, 3rd item]