The lease for the entire 17th floor at the 900,000-square-foot 345 Hudson--located between Charlton and King streets--is for five years, according to a release from Cushman & Wakefield, which arranged the deal. Asking rents were not disclosed; comparable spaces in the area have gotten rents in the high $40s and low $50s.
"In Demand was very pleased to remain in its long-time offices at 345 Hudson Street," says Michael Burlant, a senior director at C&W, in a release. "The space offers great views and is in one of the best buildings in the Hudson Square submarket." Burlant and C&W executive director Dale Schlather spoke for In Demand in negotiations with Trinity Real Estate, the building's owner. The tenant is a provider of video-on-demand and pay-per-view programming.
In Demand's media neighbors at 345 Hudson include Viacom's MTV Networks, which in 2007 signed for 400,000 square feet there. When the Nature Publishing Group renewed and expanded its lease to nearly 70,000 square feet at Trinity's One Hudson Square last month, Leon Manoff, executive managing director with Williams Real Estate, told GlobeSt.com that the NPG deal was part of an increasingly prevalent trend.
"Tenants are staying in place for a variety of reasons, many related to cost," Manoff said in November. "They might be able to find space a little cheaper elsewhere, but after you factor in construction and moving expenses, it makes more sense to renew." An even more striking example of the renewing-in-place trend, Manoff said, was Viacom's decision to keep its 1.3 million square feet at 1515 Broadway.
Manoff, who represented NPG in the lease, told GlobeSt.com last month that the deal also illustrated the appeal of the Hudson Square area. "It's become a media hub," he said. Along with MTV, New York magazine had relocated to the neighborhood in the past year and a half. The large floorplates of Hudson Square's office buildings are conducive to media operations, Manoff said, while the area itself "has developed a cachet." Another recent media-tenant arrival to the Hudson Square submarket is WNYC, which moved into its space at 160-170 Varick St. last summer.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
