The two major new deals just signed demonstrate the enduring appeal of Related’s Hudson Yards complex and the trend toward newer buildings over older, more highly-regarded properties.
Warner Bros. Discovery (WBD), the largest tenant at the 2.6 million-square-foot 30 Hudson Yards, has been consolidating operations since AT&T’s WarnerMedia merged with Discovery in 2022. The resulting consolidation of space has freed up 310,000 square feet of the tower’s 1.4 million square feet, which has quickly booked up.
Law firm Covington & Burling has signed a sublease for 235,479 square feet at 620 Eighth Avenue, expanding from 200,000 square feet in the New York Times Building that it is scheduled to vacate next year, according to sources.
Monopolies trading firm Susquehanna International Group (SIG) has relocated from 140 Broadway downtown and subleased the 73,735-square-foot property.
Hudson Yards Tower opened in 2019, Times Tower in 2007, and 140 Broadway in 1967.
The reasons for the two moves were not immediately clear, and neither Tennant, Related nor the brokers involved would comment on any aspect of the situation, which we learned about through market sources.
30 Hudson Yards, which includes the Peak restaurant and The Edge observation deck on the top floor, is also home to other companies, including the headquarters of KKR, Wells Fargo, and Related, which all have their own space as condominiums. WBD still has the largest presence in the tower, which also includes CNN’s five floors of space totaling 300,000 square feet.
Our sources say Covington and SIG’s subleases from WBD are expected to be converted to direct leases with Related at some point in the future.
It has also been revealed that in conjunction with the transaction, Related will redesign the tower’s ground floor lobby, sky lobby and amenities, including previously unused outdoor terraces on the upper floors.
Brokers involved were CBRE’s Robert Alexander, Anthony Manginelli and Taylor Callahan and WBD’s Ryan Alexander.
Matthew Barlow and Steve Barker of Savills represented Covington. Brian Goldman, Ross Pearlman and Matthew Loeberbaum of Newmark represented SIG.
