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CBRE hasn’t given up on the physical office just yet, with an expansion in the works at the MetLife Building along with a shakeup of its Lower Manhattan footprint.
The brokerage is adding nearly 45K SF on the 18th floor at 200 Park Ave., bringing its total space there to more than 215K SF, it announced Tuesday. The new lease is for six years and will allow it to consolidate its advisory services into one location. It is also leaving its 140 Broadway location to take up space at its in-house flexible office location, Hana, at 3 World Trade Center when it opens later this year.
“The Hana space will give our people a first-class office to work from when they are Downtown for meetings and client engagement, delivering an environment, services, amenities and location that will be hard to match,” CBRE Northeast Division Advisory Services President Matt Van Buren said in release.
As uncertainty has loomed on the New York City office leasing market, deal volume plunged to its lowest level in a decade last quarter. Still, there have been some bright spots as technology companies have committed to new space, including Facebook’s mammoth lease at the Farley Building and TikTok’s deal at 151 West 42nd St.
The brokerage is throwing support behind its own flexible workspace provider when many operators are looking to shut down locations. CBRE signed its first Hana location in Dallas last year, having launched the venture back in 2018. It doesn't lease space directly but works with property owners to design, build and operate flexible office space for them.
The location at 3 World Trade Center was announced in February and is a revenue-sharing arrangement with landlord Silverstein Properties. The location spans 85K SF across two floors of the 2.5M SF building. A total of 5K SF is set to be used for the Hana group's headquarters.
CBRE moved its Downtown office to 140 Broadway in 2004, when it signed a 10-year, 24K SF sublease with Brown Brothers Harriman. German asset manager Union Investment owns the 52-story tower.
CBRE did not say in its lease how much space it will take at the Hana location. CBRE’s Craig Reicher handled his firm's lease negotiations at 200 Park Ave., while Gus Field and Megan Sheehan of Tishman Speyer arranged the deal in-house for the landlord.
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