Behind the Deal: Lease-Up at Goldman Sachs Old Space

Publishing group Macmillan Science and Education has leased 176k SF in Brookfield’s One New York Plaza, following Revlon’s recent 90k SF lease there. (That means no split ends or split infinitives.) That's a wrap on the lease-up of Goldman Sachs' former 400k SF at the top of the tower.

CBRE’s Adam Foster (who repped Brookfield with colleagues Peter Turchin, Mike Rizzo, and Ken Rapp) says 6M SF of Downtown office has gone to tenants coming from other submarkets in the past three years. Backfilling Goldman Sachs’ space took just four months, thanks to TAMI tenants. Revlon moved from Grand Central and Davis Brody architects from Hudson Square. (Law firm Mound Cotton Wollan & Greengrass relocated within the neighborhood from One Battery Park Plaza.) Adam also tells us 200k SF in One New York Plaza will become available from multiple tenants next year and negotiations already are underway. The space could go in one block, or the 68k SF floors could lease separately.

Macmillan is consolidating from three NYC offices, the largest of which is at 1 Hudson Square, says Colliers Leon Manoff (snapped in Colliers’ new 666 Fifth Ave office yesterday). Asking rents at One New York Plaza are in the high $40s/SF to low $50s, he says, while Trinity Real Estate’s hot Hudson Square in Midtown South is going for around $65/SF. The “institutional” space Downtown (i.e., the stuff formerly occupied by financial companies) is just what big media companies are looking for: large floorplates and good natural light that they can turn into open office environments. And that’s what Macmillan intends to do here: a campus setting like its five buildings in London. The publisher will move in by the middle of 2015.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Interest Rate Hike Douses Outlook For Atlanta Developers

Chicago Office Deals Feature More Scrutiny, Added Tenant Protections

Delaware Statutory Trust Fundraising Jumps 27% From 2025

Tishman Speyer Retakes Chrysler Building, Plans $235M Renovation

Activist Investor Buys Stake In Empire State Building Owner

San Francisco Office Market Climbs, Fueling Demand For Large Blocks, Luxury Space

DRA Buys Stake In 1301 Sixth Ave. At $1.3B Valuation: The N.Y. Deal Sheet

Affinius Relinquishes Big Office Building Next To Capital One Arena

CRE Finance Sentiment Index Falls To 3-Year Low As Economic Fears Mount

RN3 Enters Dutch Logistics Market With DHL Sale-Leaseback Deal

Major NYC Multifamily Firm Expands With Tech-Driven Operations

One Thomas Circle, The Elevated Workplace For The Way D.C. Works