NEW YORK CITY-Investment and management firm Paramount Group, Inc. has executed a 51,852-square-foot lease expansion for global cosmetics firm Shiseido Americas Corp. at 900 Third Ave., GlobeSt.com has learned. The company, which previously leased two full floors in the building, has taken an additional floor there, and now occupies just under 10% of the 593,000-square-foot, 36-story class A tower.
Paramount’s vice president of leasing Peter Brindley tells GlobeSt.com that the longtime tenant “was tight on space” and needed the additional room to accommodate a greater amount of personnel. “They have continued to grow within the building over time,” Brindley says, noting that Shiseido is now occupying the sixth, ninth and 15th floors, averaging 17,000 square feet each. “They have been in the building for over two decades and they are very happy,” he says, describing it as a “testament to the quality of Paramount” and the tenant’s “desire to grow at 900 Third.”
Asking rents start at the mid- to upper- $50s per square foot, while high floors can fetch rents over $70 per square foot, Brindley explains. The building is over 90% occupied.
“It is one of the most dynamic locations in Midtown,” Brindley says, adding that the tower’s floorplates and diverse tenant base were also attractive factors in the renewal and expansion deal. “Whether you are a law firm, an international cosmetics company or a financial services tenant, I think that’s the take-away in this building,” he says. “In addition to the accessibly, you have a highly flexible and efficient floorplate that caters to a wide range of industries.”
While Brindley represented Paramount in-house, Studley’s executive managing director John A. Mambrino represented the tenants in the leasing transaction. While unavailable for comment, Mambrino said in a statement that Shiseido has “enjoyed its two-decade relationship with Paramount” and “was pleased to be able to continue to grow its business at this prestigious corporate address.”
The building--situated between East 54th and East 55th streets--is located within Midtown East’s prime commercial district. Albert Behler, president & CEO of Paramount Group, said in a prepared statement that the deal is a testament to the firm’s success in retaining and growing its tenant base. “We thank Shiseido Americas for its loyalty and look forward to continuing to provide the firm with premium space, fantastic accessibility and a committed, hands on management staff for many years to come,” he said.
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