Investor Dan Loeb’s hedge fund is betting the office market’s flight-to-quality trend can apply to subleasing, with a bid to sublease its entire Hudson Yards headquarters available.
Third Point put 89,000 square feet at Related Companies’ 55 Hudson Yards up for sublease, Bloomberg reported. The availability across the top three floors of the property was first disclosed by CoStar.
The firm signed a lease in 2017, agreeing to occupy the top floors of the Far West Side building through July 2029. As office needs waned for many companies from the pandemic, however, Loeb has been looking to sublease at least half a floor for the past three years.
Third Point is asking for $165 per square foot, people familiar with the offering told the outlet. When the company came on board six years ago, Third Point paid $130 per square foot.
A 2020 rent roll of the property by The Real Deal found Third Point accounted for 6.2 percent of the property’s total square footage and 8.6 percent of the property’s total base rent. The largest share of the base rent at the time was paid by Steve Cohen’s Point72, which occupies 332,000 square feet and pays $88.37 per square foot.
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Elsewhere in the property, financial planner J.F. Lehman & Company earlier this year took 29,000 square feet at 55 Hudson Yards. International law firm Milbank tacked on additional space to hit 315,000 square feet at the property, which brought occupancy to 100 percent.
Tenants have turned to subleasing during the pandemic as they consider their future office needs. There’s roughly 20 million square feet of space available on the subleasing market in the city, according to Wharton Property Advisors founder Ruth Colp-Haber, in addition to the approximately 100 million square feet available in the broader office market.
— Holden Walter-Warner