The article discusses the trend of corporate consolidation leading large office tenants to seek new, often smaller spaces. Notable examples include Havas downsizing from 200 Hudson St. and 2 Sigma, a hedge fund, looking to consolidate its 500,000 square feet into 350,000-400,000 in Midtown. Other companies such as AMC Networks and Nomura Holdings are also scouting for new leases, signaling changes in the rental market. While leasing has slowed from its recent peaks, progress is still being made with medium-sized deals like those at 360 Lexington Ave.
Meanwhile, Nomura Holdings is looking at Vornado's Penn 2, as Bloomberg first reported. If it leaves all or part of its current 900,000 square feet at Worldwide Plaza (825 Eighth Ave.), where it has an exit option in 2027, it would leave more floors to re-fill for the tower's owners, SL Green and RXR.
Leasing has been subdued since the huge surge in January and February, but medium-size deals are still getting done. At 360 Lexington Ave. at East 40th Street, longtime tenant Webster Bank signed an expansion and extension totaling 46,000 square feet.
#office-space #corporate-consolidation #commercial-real-estate #leasing-trends #downtown-real-estate
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