Amazon Gobbles Up Another 330K SF In Midtown Manhattan
E-commerce giant Amazon has signed a massive new lease in Midtown, bringing its recent Manhattan office leasing spree to nearly 1M SF.
The e-commerce giant has signed a 15-year deal to occupy 330K SF at Property & Building Corp.’s 10 Bryant Park, according to a filing on the Tel Aviv Stock Exchange.
Amazon has been in talks to take over the space since at least October. The filing was first reported by The Real Deal.
According to a translation of a separate TASE filing by PBC, the landlord agreed to grant the Seattle-based tech giant 16 months of free rent and $53.8M in tenant improvements for the leased space.
PBC also committed to providing $20M in building upgrades and renovations as part of the deal and is working to deliver the space to Amazon as soon as May. Amazon is expected to pay roughly $29.5M per year for the first five years with escalations after five and 10 years.
Amazon will occupy floors three through 11 at the 30-story, 865K SF tower, backfilling space vacated by 10 Bryant Park’s anchor tenant, HSBC, which announced plans to move to Tishman Speyer’s The Spiral last year.
Spokespeople for Amazon and PBC didn't respond to Bisnow's request for comment by press time.
Amazon also has an 18-month option to expand to 145K SF in an adjacent building on 39th Street just behind 10 Bryant Park also owned by PBC. It also negotiated the right of first refusal for space opening up at 10 Bryant, also known as 452 Fifth Ave.
The deal is its fourth Manhattan office lease since October, bringing the total amount of space leased by the company to roughly 940K SF in seven months.
Amazon's expansion comes as it has instituted a requirement that its employees return to the office five days a week, reneging on the flexibility it gave its employees to pursue hybrid schedules after the pandemic. That policy revealed that Amazon didn't have enough desks for workers in dozens of offices, including its NYC hub, The Wall Street Journal previously reported.
The latest deal, at the building formerly known as HSBC Tower, places more Amazon employees right next door to the former Lord & Taylor building at 424 Fifth Ave., which Amazon bought from WeWork for $1.2B in March 2020 and turned into the company’s Manhattan headquarters for 2,000 employees.
Previously, the e-commerce giant partnered with WeWork in October to sign a sublease deal for 304K SF at Vornado’s 330 W. 34th St., Commercial Observer reported at the time. In February, they partnered again on a 112K SF deal at 5 Manhattan West.
And last month, Amazon signed a 193K SF lease with RXR and Walton Street Capital’s 237 Park Ave.
