Jerome M. Cohen, chairman of GVA, says a lease is expiring and will leave two empty floors in the building, which has about 220,000 sf of office space, not including the first floor retail level. One other tenant, situated on two contiguous floors to the upcoming vacancy, is expected to leave after the renovations are complete and the rents go up, Cohen tells GlobeSt.com. The two vacancies will open up about 55,000 sf, while another 35,000 sf of tenants also may leave, he says.
"Because of substantial changes being made to the building, space for rent will be considerably more than in the past. We anticipate that the tenants will not be willing to pay the increase," Cohen says. "Our neighbor has been renting full floors for $150 per sf. The market for distinguished buildings in this area is around $125 to $150 per sf, depending on where you are in the building. If we have tenants now paying $45, I don't expect them to stay around."
He would not divulge how much is being spent on the renovation, or the name of the tenants that he thinks will leave. Current tenants include the offices for Loews and Estee Lauder. Retail tenants include the flagship store of Donna Karen, Anne Klein and Anya Hindmarch.
Cohen did detail the planned work. The building's renovation includes a new glass facade, an exterior granite base on the first floor, renovated terraces on setbacks and the removal of existing parapets and the installation of new glass walls for unobstructed views. Architect Richard Hayden with Swanke Hayden Connell will design and oversee the transformation of the building's exterior and the public areas inside it.
The renovation should be complete by November, Cohen says. The property was built in 1951, and GVA purchased it in 1971.
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