Early Renewal Trend Continues

Cushman & Wakefield's David Rosenbloom and Charles Borrok represented the firm, while Calvin Farley and Blythe Kinsler represented Tishman Speyer in-house. According to James Delmonte, director, research service for C&W, early renewals are a major trend as the market gains momentum. And in a company conference call, Reckson president and CEO Scott Rechler said he's seeing early renewals "all over" and tenants actively looking for expansion space.

"We were able to capitalize on an opportunity to renew our lease early and take advantage of favorable market conditions," points out Douglas Danzig, chairman of Fulbright & Jaworski's real estate practice group. Founded in 1917, the firm has more than 900 lawyers and 50 integrated practice areas. Rosenbloom notes that C&W identified several "attractive alternative locations, an opportunity presented itself for a contiguous floor at 666 Fifth which enabled the firm to grow within the building rather than having to relocate."

Built in 1957, 666 Fifth Ave. is a 39-story office located between 52nd and 53rd streets. Totaling about 1.3 million sf, other tenants include Tishman Realty & Construction and Citigroup.

Earlier this month, the Permanent Mission of Ireland signed a 12-year lease extension for the 15,895 sf it occupies at One Dag Hammarskjold Plaza. The Mission opted to renew early to protect its tenancy as well as to lock in an attractive rate. In October 2004, intimate apparel manufacturer Wacoal America inked a 15-year deal and grabbed an additional 16,500 sf at 136 Madison Ave. in Murray Hill. While the firm's existing lease was due to expire in 2007, it also required additional space for its growing business. Last February, the Permanent Mission of France to the United Nations renewed its 33,000-sf lease at One Dag Hammarskjold Plaza at a reduced rent four years before the current lease expiration. In October 2003, Calvin Klein signed an early renewal for nearly 143,000 sf of office space at 205 W 39th St., where the clothing designer has been headquartered since 1978.

The early renewal trend is not just relegated to the city. In just one example, Crane Co. has renewed its lease two and a half years early, and expanded its space to a total of 25,687 sf at W&M Properties' First Stamford Place office complex in Stamford, CT.