NEW YORK CITY-Continuing its streak in attracting creative class companies, Lower Manhattan has landed another advertising agency tenant. Droga5 will relocate to 120 Wall St. early next year from its current NoLita headquarters.
The company signed a 15-year lease to occupy five floors totaling 92,000 square feet at 120 Wall, which is owned by Silverstein Properties. Droga5 plans to embark on a major expansion with the new space; it will create up to 154 new jobs by the end of 2017, it reveals. Droga5 was enticed, in part, to make the move by incentives from both the state and the city. No further information on the government's offerings were available at press time.
Silverstein's Roger Silverstein, EVP and Joseph Artusa, SVP, handled lease negotiations for the landlord. Ken Siegel, managing director and Howard Hersch, VP of Jones Lang LaSalle, along with David Brooks, partner, real estate and Marty Edelman, counsel of Paul Hastings represented Droga5 on the lease negotiations. Attorney Ross Moskowitz of Stroock, Stroock & Lavan LLP handled negotiations for Droga5.
Droga5 vice chairman Andrew Essex, tells GlobeSt.com, "This new space affords us opportunities for growth and scale we weren't able to achieve in the past, and we have every reason to believe best is yet to come."
He adds, “The time has come for our real estate to match the scale of our ambitions, and 120 Wall Street and the surrounding community of industry leaders in technology and media offer exactly that.”
According to the Downtown Alliance, of the 391 companies that have relocated to Lower Manhattan since 2005, creative services firms are leading the way, with 28% of relocations by square footage leased.
“Lower Manhattan's ties to a region wide transportation network, its array of attractive office space options and a growing community of innovators in media and technology have made us a destination for creative firms and minds,” says Alliance president Elizabeth Berger. “The country's leading tech, media and advertising companies are deciding that Downtown is the place to do business, and the economies of New York City and State are the beneficiaries of the district's magnetic vitality and dynamism.”
Silverstein recently embarked on a capital improvement plan at 120 Wall St. to modernize the façade, lobby and elevator cabs at the property. Renovations will be completed next month. Droga5's offices are being designed by Rob Rogers, partner at Rogers Marvel Architects.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
