Oppenheimer & Co. is taking over six floors of a Financial District office tower.
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The investment bank signed for 220K SF at RXR’s 32 Old Slip, a 36-story, 1.1M SF skyscraper, with plans to begin its move-in during the first quarter of 2028.
The company plans to relocate from a 270K SF space at 85 Broad St., a spokesperson for JLL, which represented the tenant, told Bisnow.
“Oppenheimer’s commitment to 32 Old Slip speaks to the enduring appeal of Lower Manhattan and the continued evolution of its office market,” William Elder, RXR’s executive vice president and manager of the landlord’s New York City division, said in a statement.
RXR, which paid $675M for the property in 2015, said it will jointly invest around $66M into the space with Oppenheimer to support a renovation and fit-out led by Gensler.
“Our new headquarters at 32 Old Slip in Lower Manhattan reaffirms our commitment to the area,” Oppenheimer President and CEO Robert Lowenthal said in a statement. “This move is an investment in our culture, bringing our teams together on six floors with modern technology and a dedicated space to welcome clients.”
The deal will keep more than 1,000 jobs in FiDi, according to Gov. Kathy Hochul. New York state’s economic development agency, Empire State Development, is providing the company with a $3.2M capital grant.
“This commitment sends a clear message that there is no better place to do business than New York,” Hochul said in a statement. “We have the talent, the access to global markets and resources companies need to compete, innovate and grow.”
JLL’s Matt Astrachan, Mitchell Konsker and Steven Bauer represented Oppenheimer in the deal, while RXR’s Daniel Birney and Heidi Steinegger represented the landlord in-house.
Despite NYC’s status as a financial powerhouse, Downtown Manhattan has lagged behind Midtown and Midtown South in the battle to attract tenants since the pandemic due to its high stock of Class-B and C buildings.
The submarket, which Cushman & Wakefield classifies as the western side of FiDi, had one of the highest vacancy rates of any part of the city at the end of the third quarter, at 26.7%.
But it has started to show some signs of a revival in recent months, Bloomberg reported in September. Tenants inked deals for 4M SF south of Canal Street in the first half of the year, with asking rents tracking up by 8% in July compared to a year earlier.
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