Manhattan Office Market Gains Momentum

By Veronica Grecu, Associate Editor New York-based financial services company Morgan Stanley has a deal for almost 1.2 million square feet of space in One New York Plaza, a premier office building located in lower Manhattan at the intersection of South [...]

New York-based financial services company Morgan Stanley has a deal for almost 1.2 million square feet of space in One New York Plaza, a premier office building located in lower Manhattan at the intersection of South and Whitehall streets. This is the company’s largest single-asset office lease in New York since 2008.

According to the official statement released by Brookfield Office Properties, the building’s owner, Morgan Stanley, renewed its 816,000 square feet of existing space at the site (782,000 of which had been subleased with Wells Fargo and the rest with Brookfield Office Properties directly). Under the new direct lease, which is set to expire in 2029, the financial services company will expand its footprint in the building by 337,000 square feet.

The bank was represented in the negotiations by Barry Gosin, Brian Waterman and Romel Canete of real estate consulting firm Newmark Knight Frank, while Brookfield Office Properties was represented in-house by Duncan McCuaig, Vice President of Leasing.

In further commercial real estate news, Bank of America is going forward with a plan to sell some of its properties and unload real estate assets, according to The Wall Street Journal. The bank has agreed to sell its 756,000-square-foot office building at 222 Broadway to Beacon Capital Partners for $230 million (or approximately $320 per square foot) and then lease it back.

Earlier in March, in a similar transaction, Bank of America sold 100 Federal St. in Boston for $615 million to local real estate investment trust Boston Properties Inc. and then leased back 787,000 square feet, according to a Bloomberg report.

Photo credits Brookfield Office Properties Inc.