NEW YORK CITY-Tuesday morning brought an announcement of one multi-floor Manhattan headquarters lease, and Tuesday afternoon brought two more. Rudin Management Co. said late yesterday afternoon that the National Football League has signed a 20-year lease for approximately 175,000 square feet at 345 Park Ave. for its new headquarters, while SL Green Realty Corp. announced that CBS Broadcasting had extended its lease for 281,896 square feet of studio space at 555 W. 57th St. through 2023. In all, nearly 800,000 square feet of big leases in Manhattan and its suburbs were announced Tuesday.
The NFL is relocating from Broadway Partners’ 280 Park Ave. and reducing its square footage by about 15% from the 205,000 square feet it currently occupies at 280 Park. Along with three full floors totaling about 143,000 square feet, the league is also taking approximately 30,000 square feet of below-grade space at 345 Park. According to a release, the below-grade space could be used for various operational and administrative departments.
Eric Grubman, EVP of NFL Ventures and business operations, says in the release that the 44-story 345 Park is “an outstanding building and will enable us to be more efficient.” Efficiency is the name of the game, according to the Wall Street Journal: in reporting the pending lease earlier this week, the WSJ cited NFL commissioner Roger Goodell’s 2008 directive to cut league expenses by $50 million.
Cushman & Wakefield’s Franklin Speyer and Lou D’Avanzo, together with Peter Hennessy and Daoud Awad of Jones Lang LaSalle, represented the NFL. Tom Keating of Rudin Management represented the 345 Park ownership. The league is expected to make the move up Park Avenue in the third quarter of 2011.
On the CBS renewal, Michael Laginestra, Scott Gottlieb and Andrew Sussman, all of CB Richard Ellis, represented the broadcasting giant in lease negotations. SL Green was represented in-house by Steven Durels, EVP and director of leasing and real property. Other tenants at the 20-story, one-million-square-foot Far West Side property include the City University of New York and BMW of Manhattan.
For SL Green, the CBS deal followed the news earlier on Tuesday that the REIT had signed Healthfirst to 172,000 square feet at 100 Church St., the largely vacant Downtown office property on which it foreclosed this past January and subsequently acquired. The nonprofit managed-care organization is the first office tenant SL Green has signed since it began a repositioning program at the 1.1-million-square-foot 100 Church earlier this year.
Additionally, SL Green subsidiary Reckson on Tuesday announced a pair of corporate leases in the Westchester and Fairfield County submarkets. Pepsico, the anchor tenant at Reckson's 250,000-square-foot 100 Summit Lake Dr. in Valhalla, NY, renewed its 75,000-square-foot lease there for 10 more years. In Stamford, CT, Citigroup signed a five-year early renewal lease for 82,000 square feet at 750 Washington Blvd., an 11-story, 192,000-square-foot downtown office property.
Noting that the four deals within the SL Green/Reckson portfolio totaled more than 610,000 square feet of leases transacted within the past few days, Durels adds in a statement, “CBS, Citigroup and Pepsico were all renewals, confirming that large tenants are choosing to lock in favorable occupancy costs with financially stable landlords while also providing building owners with long-term stability and rent increases over and above the in-place rent.”
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