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“Big four” ad agency inks major Garment District lease in Malkin-owned 1400 Broadway
An advertising agency has signed a major new lease in Anthony Malkin’s 1400 Broadway in the Garment District, helping to position the area as a happening hub for the creative class, the Wall Street Journal reported.
Interpublic Group of Cos., one of the advertising industry’s “big four,” inked a 86,000-square-foot deal on the lower floors of the building, and will move from its current offices on 23rd Street in the Flatiron District and in Soho on Sixth Avenue. A team headed by Jones Lang LaSalle’s Scott Panzer represented Interpublic.
Malkin, who is one of the neighborhood’s largest landlords, has invested upwards of $100 per square foot in transforming the Garment District building into one that is attractive to big-ticket corporate tenants such as technology firm Verifone and the offices of department store Kohl’s. Malkin’s efforts represent a trend where the area’s landlords are rebranding the neighborhood, though this has met with resistance from the garment industry.
Indeed, these landlords have had a fair amount of success, with over 100 digital agencies and tech startups now based in the area, according to information the Journal received from the Business Improvement District. A big draw for these companies is the $41 per square foot average rent in the area, which compares favorably with the over $60 per square foot that tech tenants would pay in nearby Midtown South. [WSJ] —Hiten Samtani