NEW YORK CITY—Two big leases have been signed in Midtown by financial services firms.
The accounting firm CohnReznick has signed for about 126,000 square feet—at an asking rent of $68 per square foot—at 1301 Sixth Ave., Newmark Grubb Knight Frank's Andrew Sachs tells GlobeSt.com. He represented the landlord, which is the Paramount Group, in the deal, along with NGKF's Timothy Gibson, Ben Shapiro and Bill Levitsky.
Paramount also was represented in-house by Ted Koltis, SVP and Peter Brindley, VP. CohnReznick was repped by a CBRE team led by Michael Laginestra and including Rocco Laginestra and Michael Wellen. Representatives of the firm declined to comment to GlobeSt.com.
The move marks a significant expansion from the firm's current headquarters at 1212 Sixth, Sachs notes. “This is an opportunity for CohnReznick to really transform its occupancy because 1301 Sixth Ave. has 63,000-square-foot floorplates while 1212 has much smaller floorplates of about 13,000 square feet.”
He continues, “This gives the company a chance to densify and implement a new workplace strategy. Also, 1212 is much smaller at 250,000 square feet while 1301 is 1.75 million square feet and it's probably the most prestigious Class A office building on Sixth Avenue, so this really creates a tremendous opportunity for CohnReznick to raise its profile.
Meanwhile, Fiduciary Trust International and its parent company, Franklin Templeton, also are taking 126,000 square feet at SL Green Realty Corp. and Vornado Realty Trust's 280 Park Ave., for 15 years, the New York Post reports. The building recently underwent a $150-million renovation. SL Green declined to comment to GlobeSt.com and Vornado could not be reached at press time.
The two companies will relocate from 600 Fifth Ave. next year, insiders tell the Post. The new space will serve as Fiduciary Trust's headquarters, while California-based Franklin Templeton will be on a different floor.
The tenant was repped by CBRE's Mary Ann Tighe, Eric Deutsch, Ken Meyerson, Chris Corrinet and Zach Weil. The ownership was repped by SL Green's leasing director Steven Durels and CBRE's Peter Turchin. CBRE representatives declined to comment to GlobeSt.com.
The rent could not be determined. But last October, Durels said asking rents at 280 Park were $95 to $130 a square foot. At that time, the 1.24 million-square-foot tower was 75% occupied, compared with 50 percent when SLG and Vornado bought it in 2012.
Back at 1301 Sixth, there are still spaces available, Sachs notes. “We still have a midrise block, on floors 28 to 33, of abut 180,000 square feet, with a fair amount of activity from law firms and financial services firms. Asking rents for that space are $84 per square foot.”
On floors, 37, 38 and a partial floor on 39, he continues. “The floor plates are about 30,000 square feet per floor and are highly efficient. That block of space spans 72,000 square feet, and asking rents are $92 per square foot."
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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.
