Manhattan's 200 Madison Ave. Holds onto Havas in 170KSF Lease Renewal, Expansion
- Jul 26, 2012
More than a few major office tenants in Manhattan are choosing to stay put at their current addresses, and that is exactly what Havas Worldwide Health has decided to do. The health advertising firm has renewed its lease at 200 Madison Ave., in a transaction that allowed the company to expand its occupancy to 170,000 square feet.
Havas has called 200 Madison, a 670,000-square foot tower owned by George Comfort & Sons and Loeb Partners Realty, home for more than 15 years. The company relied on commercial real estate services firm Newmark Grubb Knight Frank in its hunt for the appropriate space, a search that took roughly two years. Ultimately, Havas opted to renew its commitment to the 26-story tower, while expanding its elbowroom to accompany the consolidation of additional Havas divisions under one roof. The company will maintain the 200 Madison address for the long term.
“After an exhaustive search and lease negotiation, the company has accomplished its goals of joining its New York offices in upgraded space and securing amenities high on the team’s wish list, including outdoor space,” said David A. Falk, NGKF president of the New York Tri-State Region. To tailor the increased space to its specifications, Havas will conduct a renovation program over the next three years. When all is said and done, the company will have the run of the sixth, seventh and ninth floors, in addition to occupying a segment of the 20th floor.
There are options in Manhattan; the current vacancy rate is 12.9 percent, as per a NGKF report. And there are even large blocks of space available here and there, for example at 180 Maiden Lane, where 800,000 square feet returned to the market in the second quarter. Still, Havas, like many large office users, decided to recommit and upsize. Such transactions in the second quarter included Viacom’s renewal of its lease at 1515 Broadway and expansion of its occupancy from 1.4 million to 1.6 million square feet. At 1 New York Plaza, Morgan Stanley renewed and expanded for nearly 1.2 million square feet, setting the stage for a consolidation of various offices across New York City.