Jefferies Group snubs World Trade Center towers, renews at 520 Madison
Jefferies Group has renewed its 450,000-square-foot lease at 520 Madison Avenue, putting rest to speculation that the investment bank would move to a new location at Midtown West or at the World Trade Center site, Crain’s reported. The renewal adds 15 years to Jefferies’ lease in the 43-story, 1 million-square-foot tower, which is owned by Tishman Speyer. Jefferies will occupy two spaces in the tower; a large block of space on floors 2 to 13, and a smaller, higher-priced space on floors 16 to 20. In the first week of January, SL Green Realty had indicated that a deal was expected, as The Real Deal previously reported. The bank’s hesitation to move reflects the reluctance to invest in building out a new office space, which would require specialized and expensive infrastructure, such as trading systems, to be installed.
Jefferies decision comes in the wake of similar renewals by other large banks, including UBS, which recently renewed a 900,000-square-foot lease at 1285 Sixth Avenue, and Morgan Stanley, which inked a 1-million-square-foot renewal at 1 New York Plaza in Lower Manhattan last year. [Crain’s] –Hiten Samtani