BNY Mellon Takes 350 KSF at Brookfield’s Downtown NYC Complex
- Jun 30, 2014
The Lower Manhattan office market seals a deal with another big fish. BNY Mellon has signed on for 350,000 square feet at 225 Liberty St., one of the five office towers in Brookfield Office Properties Inc.’s 8 million-square-foot Brookfield Place complex, formerly known as the World Financial Center.
“BNY Mellon’s lease agreement is a testament to Lower Manhattan’s incomparable draw and benefits,” Jessica Lappin, President of the Alliance for Downtown New York, told Commercial Property Executive. “Lower Manhattan continues to build on its status as a world class business district.”
The 20-year contract provides BNY Mellon with a new home for its consolidation and relocation from its 1.1 million-square-foot headquarters building at One Wall St., which the company is selling to a Macklowe Properties-led joint venture for $585 million. The global investments concern will hardly be lonely at the 2.7-million-square-foot 225 Liberty; in May, Time Inc. entered into a lease agreement for 700,000 square feet at the premier building in a relocation of its global headquarters from Midtown.
The 44-story high-rise is now nearly 90 percent leased. Additionally, in a move that will likely attract even more attention at Brookfield Place, Brookfield is submitting the retail and public segment of the property to a $250 million renovation.
The numbers are looking good for all of Lower Manhattan, as well.
“With more than 1.6 million square feet in commercial leasing, Lower Manhattan has just seen the best first quarter in more than a decade,” Lappin added. “More and more corporations, both large and small, are navigating to Lower Manhattan and all it has to offer.”
The overall vacancy rate in Downtown dropped to 12 percent in May, according to a report by commercial real estate services firm JLL, which represented BNY Mellon in the lease transaction.