Many large office tenants have their eyes on new digs — some of which would give them less space than their current locations as corporate consolidation remains a significant market factor.
Sources said that French creative agency Havas, now at 200 Hudson St., is downsizing and is on the prowl for new digs elsewhere. Newmark tristate president David A. Falk responded to our query, “We are evaluating all opportunities for Havas in the range of 350,000 square feet.”
Also generating buzz is technology-focused hedge fund 2 Sigma. Currently with a total of 500,000 square feet at 100 Sixth Ave. and 101 Sixth across the street, it’s looking to consolidate into between 350,000-400,000 square feet in midtown or midtown south. The firm is repped by a Cushman & Wakefield team that includes Peter Trivelas and Tara Stacom, who declined to comment..
Also possibly on the move is AMC Networks at 11 Penn Plaza, which is said to be trolling for 200,000 square feet elsewhere.
Meanwhile, Nomura Holdings is looking at Vornado’s Penn 2, as Bloomberg first reported. If it leaves all or part of its current 900,000 square feet at Worldwide Plaza (825 Eighth Ave.), where it has an exit option in 2027, it would leave more floors to re-fill for the tower’s owners, SL Green and RXR.
The tower lost major tenant Cravath, Swain last year. The landlord partners recently modified a $940 million CMBS loan enabling the property to leave special servicing. An SL Green spokesman said, “Worldwide Plaza is an iconic, well-located asset with a rare block of space available at the top that will be in high demand. The mortgage loan is current. We have ample reserves to support a robust redevelopment plan to bring the property up to today’s standards.”
Leasing has been subdued since the huge surge in January and February, but medium-size deals are still getting done
At 360 Lexington Ave. at East 40th Street, longtime tenant Webster Bank signed an expansion and extension totaling 46,000 square feet. Insurance group Signers National will move to the building with a 15,000 square-foot new lease.
The boutique tower was recently acquired by AmTrust RE, who plan to add a high-end tenants’ amenity space and to upgrade the facade.
Privately held AM Trust RE, led by president Jonathan Bennett, owns more than 12 million square feet of prime commercial properties in the US.
Octus, a credit intelligence and data firm formerly known as Reorg, signed for 43,000 square feet at 295 Fifth, a joint venture of Tribeca Investment Group, PIM Real Estate and Meadow Partners.
The 710,000 square-foot former Textile Building, opened in 1920, also recently lured Bridgewater Associates for its first Manhattan location and Korean steakhouse Oiji Stk.
The building’s owners have repositioned it with a new lobby and tenant amenities. TIG principal Elliott Ingerman said, “Ultimately it’s our job to create an environment that people want to come to every day.”
Octus was repped by Colliers. CBRE repped the landlord.
The Roosevelt Hotel, which has been home to thousands of mostly illegal migrants, will close on June 22, as per a notice on the state’s Department of Labor WARN site.
The notice says 96 employees will be out of work due to “contract termination” — i.e., the end of the city’s $220 million lease from the Roosevelt’s owner, the government of Pakistan, to turn the once-proud hotel into a homeless shelter.
Now JLL, the agent for Pakistan, can get on with finding a new owner — and ending the two-year nightmare in the heart of midtown.
