Macmillan Leaves Flatiron Building for Lower Manhattan
- Aug 03, 2017
Silverstein Properties has reeled in a new tenant at 120 Broadway in Lower Manhattan. The REIT secured a commitment from Macmillan Publishers to take 261,000 square feet at the 1.9 million-square-foot, downtown office tower. The deal leaves the property 96 percent leased.
Macmillan’s 20-year lease at 120 Broadway paves the way for the global book publishing company’s move from Midtown South to downtown. “The Manhattan market is strong and downtown is leading the way,” Joseph Artusa, senior vice president, leasing, with Silverstein Properties, told Commercial Property Executive. “This neighborhood has a great mix of brand-new and older office space for all kinds of tenants. It is also close to where many young, creative people live, including Brooklyn, the New Jersey waterfront and Lower Manhattan. This is becoming an important factor as companies compete for talent.”
Macmillan picked distinguished digs for its new home. A National Historic Landmark built in 1915, 120 Broadway holds the distinction of having been the largest office building in the world when it made its debut a century ago. In 2007, Silverstein spruced up the Ernest R. Graham-designed property, also known as the Equitable Building, with a $60 million renovation. Macmillan will set up shop on floors 22 through 26 of the 40-story tower, bringing employees form several locations under one roof.
Lower Manhattan’s magnetism
“Demand for space in Lower Manhattan, particularly by relocating tenants, continues to show signs of strength,” Artusa said. “Examples of this activity are two of our recent leases—Spotify at 4 World Trade Center, followed by Macmillan—totaling just under 800,000 square feet of positive absorption Downtown.” Music streaming service Spotify signed a lease for approximately 400,000 square feet at 4 WTC, taking the last remaining square footage in the building.
The numbers tell the story of the area’s popularity. Leasing volume in Lower Manhattan in the second half of 2017 was higher than any six-month period in the last three years, with leasing having nearly doubled to roughly 3.7 million square feet from the second half of 2016, according to a report by commercial real estate services firm Colliers International. Colliers represented Macmillan in the lease transaction, while Silverstein relied on its internal leasing team.
Macmillan will make the move from its space at Manhattan’s iconic Flatiron Building to 120 Broadway in early 2019.
Image courtesy of courtesy of Silverstein Properties