NYU renews at Tishman Speyer’s 11 West 42nd Street

University signed five-year lease including six months rent-free

Tishman Speyer CEO Rob Speyer, NYU President Andrew Hamilton and 11 West 42nd Street in NYC (Getty, CBRE)
Tishman Speyer CEO Rob Speyer, NYU President Andrew Hamilton and 11 West 42nd Street in NYC (Getty, CBRE)

New York University has renewed its lease at Tishman Speyer’s 11 West 42nd Street.

The university again signed on for more than 115,000 square feet at one of the school’s longtime sites, according to the New York Post. The lease covers three floors for five years and six months.

As part of the renewal, NYU is receiving its own private entrance to the building. Rents for the renewal are starting at $55.50 per square foot, but reportedly rises to $61.28 per square foot.

NYU isn’t going to have to sacrifice as much as those rents suggest, however. The Post reports there is a tenant-improvement allowance of $30 per square foot. Additionally, NYU is getting six months rent-free, resulting in a net-effective rent of $46.18 per square foot; asking rents in the building range from $60s to the $80s.

NYU houses its School of Professional Studies at the 32-story building neighboring Bryant Park.

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Another tenant in the building occasionally known as the Salmon Tower Building is commercial lender CIT Group. In March 2018, the company renewed approximately 150,000 square feet for 15 years. The company did so three years ahead of the scheduled expiration of its lease at the building.

It’s been a busy few months for Tishman Speyer.

In September, the developer scored the largest outer-borough loan in the city. The firm landed the cash-out refinancing from Bank of America for The Jacx, a 1.2-million-square-foot office and retail complex in Long Island City. The refinancing package came in at $425 million, allowing Tishman Speyer to consolidate existing construction loans and secure new debt.

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[NYP] — Holden Walter-Warner