Adobe Quadruples Its Office Space In Times Square
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Another technology company is eyeing a major Manhattan expansion, but it isn't following Google, Facebook, Twitter and Lyft to the West Side.
Adobe is quadrupling its office space in Times Square, adding 82K SF to its footprint at the former Bertelsmann Building. The software firm renewed its 27K SF lease for the 17th floor at 1540 Broadway and will expand to the 18th, 19th and 20th floors at the skyscraper.
Adobe’s total footprint will now be 109K SF in the EDGE Fund Advisors-owned building. The deal is for 10 years and rents were not disclosed.
EDGE Fund Advisors President Tiffany Sanders said the company made a “significant investment” in the building. The company has spent some $40M redeveloping the property, according to a release, including the creation of a 27K SF amenity floor that features a fitness center, a coffee bar, a food hall, a lounge and a conference center.
Office leasing in Manhattan climbed to new highs again last quarter, with average rents hitting $82 per SF, a 2% jump on the quarter before and a new record, according to CBRE. A total of 22.2M SF was leased in the first three quarters in Manhattan, a 1% bump over the same period last year.
Still, with large blocks of space becoming available in new buildings downtown and in Hudson Yards, office owners and brokers say the competition for tenants is fierce. Many landlords have been forced to upgrade older office properties in order to compete.
In the 1540 Broadway deal, CBRE’s Mary Ann Tighe, Howard Fiddle, Eric Deutsch, Christie Harle, Jason Pollen and Benjamin Joseph brokered the deal for the owner. Colliers’ Brian Given, Sheena Gohil, Carter Beim, Kellam Nelson, Jack Senske and Frank Wallach represented Adobe.
Adobe's decision to stay in Times Square is a win for Midtown, which has been bleeding tenants to the newer office stock in the city. Leasing activity in the area in Q3 was 32% lower than the five-year average, according to CBRE's office report. Adobe's building, 1540 Broadway, turns 30 next year.
Google signed the biggest lease of the year last quarter, for 1.3M SF in redeveloped space Hudson Square, Facebook is eyeing office space approaching 2M SF in new Hudson Yards buildings, and Uber is reportedly negotiating a 300K SF lease at 3 World Trade Center.