We received a question from a reader asking, “Why are there so many lease stories in your column? Isn’t there anything else going on?” Well, the truth is that office leases are indeed significant news right now. The leasing activity in Manhattan is quite a spectacle.
Despite concerns about the pandemic’s impact on remote work, the election of a more left-leaning mayor, and conflicts overseas, companies still seem confident about operating in the city.
Recently, there have been substantial leasing deals that are shaping the market. Within the last couple of months, three leases at Swig Company’s renovated building at 1411 Broadway—near West 39th Street—added up to 182,000 square feet.
Zeta Global is moving from 3 Park Ave. and will be increasing its space in Manhattan to 50,522 square feet. Apparel manufacturer Republic Clothing Corp. has converted a sublease into a direct 81,000 square-foot lease, and South Korean beauty giant Amorepacific is relocating from 1407 Broadway to occupy 50,522 square feet at the same 1411 Broadway location.
The tower, which encompasses 1.3 million square feet and has undergone $100 million in renovations, has successfully leased more than 566,000 square feet in the last year and a half, achieving a 90% occupancy rate.
The CBRE team, including Paul Amrich and others, represented Swig alongside Hines, the management firm. Current asking rents range between $72 and $110 per square foot.
In another development, Aegon Ltd.—which is rebranding to Transamerica Inc.—has selected the new building at 125 W. 57th St. for its new US headquarters. This deal, covering 20,600 square feet, follows a prior agreement with Anchorage Capital Advisors. JLL’s team represented the landlord, while Cushman & Wakefield acted on behalf of Aegon.
The 265,000 square-foot project previously attracted other firms like Eldridge Industries and Kingdon Capital Management, leading to over 75% occupancy in just two years. Additionally, Ten Five Hospitality, known for its Mother Wolf restaurants, has secured the retail space for a new venture.
