An engineering and construction firm is cutting its footprint at SL Green’s 100 Park Avenue by more than half.
AECOM renewed its lease at the Midtown South office tower, but dropped a significant amount of space, the Commercial Observer reported. The company has leased 108,000 square feet since 2010, but renewed for only 45,000 square feet for 10 years at the 36-story tower.
The firm, which previously occupyed four floors, will only occupy the building’s fifth floor moving forward. Asking rent for the space was $65 per square foot.
Cushman & Wakefield’s Robert Lowe and Paige Enguldrum represented AECOM in the lease negotiations.
The Dallas-based firm made another significant move in the office sector roughly a year ago when it relocated its corporate headquarters from Los Angeles. The high-profile departure followed in the footsteps of CBRE, which made its own corporate headquarters shift from Los Angeles to Dallas.
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Commercial
Los Angeles
AECOM shifts corporate HQ from LA to Dallas
Commercial
New York
SL Green hedges its bets, and that’s no casino pun
Commercial
New York
As workers come back, NYC's top office landlord faces a tough market
Manhattan’s biggest office landlord has in recent months touted the return of workers to New York City offices, albeit on a limited basis. Colliers data showed Manhattan’s office leasing volume surged in the third quarter and the borough’s availability rate dropped to its lowest level in 18 months, though asking rent averages were down as landlords faced stiff competition to secure tenants.
The city’s major office tenants have responded to the continued popularity of remote work by reducing office space. KPMG signed one of the biggest leases of the year for 450,000 square feet at Brookfield Properties’ Two Manhattan West, but that actually marked a significant consolidation from the 800,000 square feet the firm accounted for in the city.
Big technology companies are also backing away, looking to sublease much of their space across the country.
SL Green’s office occupancy has hovered around 90 percent in recent quarters, just below its goal of 94.3 percent occupancy across its office portfolio by the end of the year appears to be out of reach.
— Holden Walter-Warner