Two Hospitals Ink Leases Totaling 336,300 SF

NEW YORK CITY-Two of the major hospitals here have inked renewal and expansion deals. New York Presbyterian Hospital signed a 15-year lease for 195,700 sf of office space, including a 165,000 sf expansion due to the conversion of a sublease, at 673 First Ave., which is owned and managed by SL Green Realty Corp. New York University Medical Center took 140,600 sf of office space at SL Green’s One Park Ave.–80,000 sf accounted for a renewal and 60,600 sf is for an expansion, which is also a sublease-to-direct conversion.

Steven Durels, senior vice president and director of leasing at SL Green notes that the REIT worked closely with both medical concerns to customize the spaces to help meet specific operating and technical requirements. “Healthcare organizations have very specific needs when it comes to choosing a landlord,” says Durels. “Because their business impacts so many people’s lives, healthcare providers need a landlord who can respond immediately to their needs, and who can provide services 24 hours a day, seven days a week.”

New York Presbyterian has occupied the space at 673 First since 1994 housing its critical care monitoring, back office and billing functions on six floors. SL Green originally redeveloped the building and converted it from a distribution facility. Though leasing amounts were not revealed for either transaction, space One Park is advertised at between $30 and $40 per sf.