106 KSF Office Lease Signed at NYC’s 452 Fifth Ave.
- Nov 09, 2011
November 9, 2011
By Nicholas Ziegler, News Editor
While some may say the rate of office-lease signings in Midtown Manhattan has slowed, there’s always a big deal waiting around the corner. This week’s big deal comes courtesy of a 105,803-square-foot lease inked by law firm Baker & McKenzie for a 15-year term at 452 Fifth Ave., occupying seven floors of the trophy tower owned by IDB Group.
“Baker & McKenzie is one of the largest and most respected law firms in the world,” said Ehud Elizur, president of PBC-KOOR USA, L.L.C., which is a part of IDB. “We are thrilled to welcome them to the building. This lease, along with the two large commitments we had last month is further confirmation that 452 Fifth Avenue’s strategic location overlooking Bryant Park, panoramic views and superior amenities continues to attract world-class tenants.”
CBRE Group Inc. represented the building’s ownership in lease negotiations. Studley represented Baker.
The law firm will occupy floors 15 through 20, as well as part of floor 14, in the 865,121-square-foot, 30-story building, making it the second-largest tenant by floor space.
A report by Colliers International showed that asking rents in Midtown increased sharply in the third quarter of 2011, driving the average to $65.45 per square foot, up from $62.91 in the previous quarter. “The New York City economy continued to outperform the nation,” the report stated, “but the pace of growth here did slow during Q3, with the city finally feeling the impact of the national economic malaise.”
Jones Lang LaSalle came up with similar findings, noting that Midtown posted its second consecutive quarter of falling vacancy rates in 3Q11, dropping to 11.2 percent – a 0.3 percent decrease from the midyear measure.