Adobe Inc. Quadruples Manhattan Lease
- Oct 15, 2019
Creative software firm Adobe has renewed its lease at a New York City office tower, quadrupling its space to 109,296 square feet. Adobe renewed its 27,323-square-foot full-floor lease on the 17th floor of 1540 Broadway, a Class A office building near Times Square, adding an additional 81,972 square feet across the entirety of the 18th, 19th and 20th floors.
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Built in 1989, the 44-story office building, formerly known as the Bertelsmann Building, has a total of 906,287 square feet and currently has a vacancy rate of 21 percent. Notable tenants include Viacom, China Central Television and Pillsbury Winthrop Shaw Pittman. The building last changed hands in 2011, when CBRE Global Investors sold the building to EDGE for $596.2 million. A huge chunk of the building’s space will become vacant in May of 2021, when 278,000 square feet of space at the building, comprising floors 26-35, will become available for lease, per Yardi Matrix data.
A CBRE team of Mary Ann Tighe, Howard Fiddle, Eric Deutsch, Christie Harle, Jason Pollen and Benjamin Joseph represented the owner of 1540 Broadway, EDGE Fund Advisors, while a Colliers team of Brian Given, Sheena Gohil, Carter Beim, Kellam Nelson, Jack Senske and Frank Wallach of Colliers International represented Adobe.
The ownership of 1540 Broadway recently completed a $40 million renovation of the property that included a 27,000-square-foot amenity floor for tenants that features a fitness center, coffee bar, food hall, lounge and conference center. Other upgrades and improvements to the building included a revamped 45th Street entrance, a new lobby and elevator cabs, and a co-generation plant that can produce 70 percent of the building’s energy on-site.
At an NYU Schack real estate conference last week, one the most-discussed topics was the so-called “amenity wars” that have kept owners of both commercial and multifamily real estate on their toes in recent years, looking to stay competitive in the market and attract tenants and residents.