NEW YORK CITY-In a rare instance of a government body saving taxpayer dollars, the Empire State Development Corp. has managed to renew a Manhattan lease for about $100,000 square feet that slashes the price of its office space in Manhattan by more than $2 million, according to Crain's New York Business. The reduction stems from the ESDC shrewdly noting the market's current state-of-affairs while it searched for new space—as its lease was set to expire in June, a spokesman tells GlobeSt.com.
The ESDC's Manhattan office has been at 633 3rd Ave. since 2006, and it will remain there through 2023, according to the minutes from a meeting of the group's board of directors, obtained by GlobeSt.com. Under the old lease, ESDC was paying about $8.9 million annually, or $86.52 per square foot. The new rent starts at $6.5 million, or $62.50 per square foot, and gradually escalates. It eventually rises to $7.1 million, or $68.50 per square foot, in the last three years of the lease.
Back when the first lease was issued, sources say, and the global economy was thriving, prices were at an all-time high.
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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.
