Behind the Deal: Lease-Up at Goldman Sachs Old Space

Publishing group Macmillan Science and Education has leased 176k SF in Brookfield’s One New York Plaza, following Revlon’s recent 90k SF lease there. (That means no split ends or split infinitives.) That's a wrap on the lease-up of Goldman Sachs' former 400k SF at the top of the tower.

CBRE’s Adam Foster (who repped Brookfield with colleagues Peter Turchin, Mike Rizzo, and Ken Rapp) says 6M SF of Downtown office has gone to tenants coming from other submarkets in the past three years. Backfilling Goldman Sachs’ space took just four months, thanks to TAMI tenants. Revlon moved from Grand Central and Davis Brody architects from Hudson Square. (Law firm Mound Cotton Wollan & Greengrass relocated within the neighborhood from One Battery Park Plaza.) Adam also tells us 200k SF in One New York Plaza will become available from multiple tenants next year and negotiations already are underway. The space could go in one block, or the 68k SF floors could lease separately.

Macmillan is consolidating from three NYC offices, the largest of which is at 1 Hudson Square, says Colliers Leon Manoff (snapped in Colliers’ new 666 Fifth Ave office yesterday). Asking rents at One New York Plaza are in the high $40s/SF to low $50s, he says, while Trinity Real Estate’s hot Hudson Square in Midtown South is going for around $65/SF. The “institutional” space Downtown (i.e., the stuff formerly occupied by financial companies) is just what big media companies are looking for: large floorplates and good natural light that they can turn into open office environments. And that’s what Macmillan intends to do here: a campus setting like its five buildings in London. The publisher will move in by the middle of 2015.