DoorDash decided to reorder its office space in the Flatiron District, and doubled the quantity before hitting submit.
The food delivery company is adding to its space at 200 Fifth Avenue, tacking on more than 57,000 square feet on top of space it already subleased from Yelp in March, the Commercial Observer reported. DoorDash is converting the sublease into a direct deal with the landlord to occupy 115,000 square feet at the building.
JPMorgan Global Alternatives is the majority owner of the Fifth Avenue building. Boston Properties, which has rebranded as BXP, last year purchased a 27 percent minority stake in the 14-story building for $280 million, assuming responsibility for leasing services and property management.
It’s unclear what the asking rent was for the space in DoorDash’s deal, which will keep them on the eighth and ninth floors for 11 and a half years. Colliers data show the average asking rent in Midtown South during the fourth quarter was $81.35 per square foot.
A Cushman & Wakefield team including Bruce Mosler and Ethan Silverstein represented BXP. The brokerage’s Adam Ardise and Greg Pickett represented DoorDash.
Other tenants include Grey Advertising and Tiffany & Company, which agreed to a 10-year extension in 2022 while shedding nearly a third of its footprint, reducing its offices from 400,000 square feet to 287,000 square feet. Eataly, meanwhile, occupies the ground-floor retail space.
DoorDash’s expansion brings the building up to 100 percent occupancy, according to BXP. Prior to BXP’s arrival, the landlords of the 870,000-square-foot property completed $135 million in capital upgrades at the landmarked building.
L&L acquired the building, once known as the International Toy Center, in 2007 alongside Lehman Brothers for $480 million. JPMorgan swooped in to acquire Lehman’s stake four years later.
— Holden Walter-Warner