TechSpace Expands in Silicon Alley
TechSpace, a co-working space provider, is expanding in Midtown South by taking the entire 11th floor of 18 West 18th Street. TechSpace will pay rent in the high-$50s PSF for the 16,345 SF space over the 15-year term. TechSpace also has a 23,000 SF space at 44 West 28th Street, for which they are currently paying rent in the mid-$40s PSF. Last year, the company expanded at yet another location, 41 East 11th Street, by adding 20,000 SF on the 9th Floor to their existing 40,000 SF on the 7th and 8th floors for average rent in the low-$40s PSF. To view the space at 41 East 11th Street, visit 42floors.
Bain & Company Relocate to the Grace Building
Brookfield Properties scored a major tenant with the relocation of Bain & Company from 3 Times Square to floors 42-44 of the Grace Building at 1114 Avenue of the Americas. The global management consulting firm will pay rent starting in the mid-$90s PSF, which will increase to over $100 PSF over the 15-year term. Valued at over $100MM, this deal would have been the 2nd largest deal in Q3, had it been sign a little earlier. Check out the Top 10 Largest Deals of Q3 on The Real Deal.
Hedge Fund Cutting Costs on Sixth Avenue
Dabroes Management will relocate from their 12,202 SF space at 1095 Avenue of the Americas to a 8,500 SF space at 1140 Avenue of the Americas. The firm will cut costs not only by reducing space, but also by reducing the amount of rent per square foot. The starting rent for the new lease will be around $90 PSF and will climb to the mid-$90s PSF in the 10-year lease. The rent paid in the previous lease was in-line with the height of the market in 2008 - around $130 PSF. Dabroes will also give up a few floors vertically, moving from the 24th floor down to the 20th. The landlord, however, will stay the same - the Blackstone Group owns both properties. To view the space, visit VTS.