GlobeSt.com EXCLUSIVE: Law Firm Inks 49,141-SF Deal for Summer 2002 Occupancy

NEW YORK CITY-Global law firm Reed Smith is moving its practice one block east, from the historic Seagram Building at 375 Park Ave. to larger quarters at 599 Lexington Ave. And though the lease is signed and sealed, delivery won’t take place until mid-2002, reflecting what one of the brokers on the deal calls “an acute shortage of pre-built law space in Manhattan.”

Reed Smith was represented in the transaction by Joe Fabrizi, and John Isaacs of Cushman Wakefield. Tim Gibson and John Powers of Insignia/ESG brokered for building owner Boston Properties. According to Gibson, starting rent for the 49,141-sf space is in the mid-$70s. Reed has a 15-year lease for the entire 28th and 29th floors of the one-million-sf tower, Gibson says.

While the lease is already final, Reed Smith won’t take possession of the space until next summer. According to Gibson, the delayed occupancy reflects a lack of attorney-ready space in the city. “What’s unique about this deal is that the space doesn’t come available for the new tenant’s possession until July of 2002,” Gibson tells GlobeSt.com. “Even in a slow market there is a significant lack of pre-built law-firm space in Manhattan.” He says the Reed Smith deal reflects the beginning of a trend among New York City law firms toward “signing leases now for possession in the future.”