Paramount Plaza is blowing up with some big names!
Warner Music Said to Plan Move to Times Square Office Tower
Warner Music Group Corp., whose artists have included Frank Sinatra, Led Zeppelin and Bruno Mars, is negotiating to move its headquarters to a tower north of Manhattan’s Times Square, two people with knowledge of the discussions said.
Warner, the third-largest music-content provider, agreed to terms on a 15-year lease of almost 300,000 square feet at 1633 Broadway, also known as Paramount Plaza, said the people, who asked not to be identified because the negotiations are private. The company, part of Time Warner Inc. (TWX:US) until 2004, has to leave its longtime headquarters at 75 Rockefeller Plaza next year, when its rental agreement expires.
The deal would keep the company in midtown Manhattan at a time when media firms have been flocking to older buildings below 30th Street, in the area known as midtown south. Paramount Plaza is about 86 percent leased, according to property-research firm CoStar Group Inc. (CSGP:US) The 48-story, 2.5 million-square-foot (230,000-square-meter) tower is majority-owned by the German investment firm Paramount Group Inc.
Cassidy Turley isn’t involved in the deal. Robert McGrath, a spokesman for CBRE Group Inc. (CBG:US), which represents both Warner Music and Paramount Group, declined to comment.
Digital GenerationLast year, Digital Generation Inc. (DGIT:US), operator of a network that connects advertisers with TV and radio stations, took about 86,000 square feet on the lower floors of the tower at about $55 a square foot, according to CompStak Inc., a New York-based provider of leasing data. The law firm Dickstein Shapiro LLP took about 40,000 square feet on typically more-expensive higher floors, for just more than $60 a foot.
Kathleen McMorrow, a spokeswoman for Paramount Group, and James Steven, a Warner Music spokesman, declined to comment on lease negotiations.
Rockefeller PlazaScott Rechler’s RXR Realty LLC. acquired a leasehold interest in 75 Rockefeller Plaza, the youngest building in the Rockefeller Center complex, earlier this year, with plans to vacate the entire tower and renovate it. Warner Music, like all the building’s tenants, subleases its space from Time Warner. The agreement expires in mid-2014. VNO:US), according to the person with knowledge of the 1633 Broadway talks. A call to Wendi Kopsick, a Vornado spokeswoman, declined to comment.
Other tenants at 1633 Broadway, which is on the northwest corner of West 50th Street, include Morgan Stanley and CBS Corp. (CBS:US), according to CoStar.
Warner Music yesterday announced that it would share revenue with Clear Channel Communications Inc., the biggest owner of U.S. radio stations, in a strategic partnership designed to increase radio audiences and exposure for its artists. Clear Channel is also a tenant at 75 Rockefeller Plaza.
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