NEW YORK CITY-If Vornado Realty Trust was feeling any after shocks of Microsoft's decision to move out of 1290 Sixth Ave. and head for 11 Times Square, the building owner is now feeling virtually no pain.

The city's biggest commercial landlord has signed a lease with Hachette Book Group, has inked a 15-year lease for 137,000 square feet at 1290 Sixth Ave., according to Crain's New York Business. The deal, for roughly half of both the fourth and fifth floors, fills part of a block of about 250,000 square feet that recently came up for grabs following Microsoft's relocation announcement. The tech giant will head to Times Square in February.

A Hachette spokeswoman confirmed the deal to GlobeSt.com. The company will relocate to the space from 237 Park Ave., where it has been for the past eight years. Before that, Hachette was headquartered on Sixth Avenue, at 1271 Sixth Ave.

Neil Goldmacher, a broker with Newmark Grubb Knight Frank, represented Hachette in the deal. Vornado is represented in leasing transactions at the property by Cushman & Wakefield's Bruce Mosler, chairman, who led the transaction; along with Josh Kuriloff, executive vice chairman; Franklin Speyer, vice chairman and Mikael Nahmias, executive director. Glen Weiss, an executive at Vornado in charge of leasing its portfolio, also helped negotiate the deal.

“We're thrilled to be returning to the neighborhood, right in the heart of New York City, next to Radio City and Rock Center, providing an easy commute for Hachette Book Group staff,” the spokeswoman says. “The central location puts us close to literary agencies, publishers, and the media.”

State Street Capital took 100,000 square feet in the building earlier this year, Together, that deal and the new lease with Hachette will absorb most of the Microsoft space, a large block of space that initially seemed tough to fill.

That appeared to be an even tougher mountain to climb at the beginning of the year when AXA Equitable—the life insurance company—dumped about 40,000 square feet of its space at 1290 Sixth Ave. onto the market for sublease. The company was offering deeply discounted rents in the $40s per square foot. That move came as hundreds of thousands of square feet of competing vacancies festered on the Sixth Avenue market, creating the appearance of a glut of options on the avenue.

But leasing picked up, the AXA space was quickly absorbed and Vornado found takers for the more expensive space it was offering directly in the building, which has a newly renovated lobby. Hachette will take the fourth and fifth floors for five years. The spokeswoman declined to reveal the rate of the lease.

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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.