NEW YORK CITY-Bearing out what GlobeSt.com reported in early December, Jefferies Group Inc. has opted to stay in Midtown with a renewal of its lease at 520 Madison Ave. Crain’s New York Business reported Tuesday that the 15-year renewal for 450,000 square feet, just under half the square footage at Tishman Speyer‘s one-million-square-foot property, entails two blocks of space that are unequal in size and rent.
According to Crain’s, Jefferies is taking a block of 350,000 square feet on floors two through 13, with rents that average $90 per square foot, and 100,000 square feet on floors 16 through 20 at an average of $10 per square foot. The financial services firm, which was acquired last fall by Leucadia for $2.6 billion in stock, was reportedly looking at new construction across Midtown and at the World Trade Center ahead of a 2014 expiration on its current lease, likely before much of the newly built space would have been ready.
With UBS opting to stay put in 900,000 square feet at 1285 Ave. of the Americas and Morgan Stanley doing the same in its one-million-square-foot berth at 1 New York Plaza Downtown, the Jefferies renewal marks the latest example of caution among financial firms when it comes to capital spending. Spokespersons for both Tishman Speyer and Jefferies did not return GlobeSt.com’s calls in time for deadline Tuesday afternoon.
Tishamn Speyer developed the 43-story 520 Madison in the early 1980s; at the time, it was the first investment-grade, stone-clad office tower built in Manhattan in more than a decade. To read the Crain’s story on the Jefferies deal at 520 Madison, click here.