![]() The company would occupy the entire fourth floor at 100 West 33 rd Street, previously home to Bank of America, for rents at or around $50 per square foot, beginning in late 2013, according to an initial report from Crain’s. The multinational advertising and public relations company, along with its subsidiaries, already occupies 430,000 square feet at 100 West 33rd Street and 220,000 square feet of space at 909 Third Avenue, a source familiar with the pending deal said.Īgencies affiliated with IPG – including public relations firm Weber Shandwick – moved into 909 Third Avenue from 919 Third Avenue in October. Neither IPG nor Vornado could be reached for comment.ġ00 West 33rd Street (Credit: Arthur G. The company has several hundred thousand square feet at 100 West 33rd Street, another building the REIT owns. IPG will take floors five through nine, 11 and 19 in the deal. Above that however, the office floors are set back, creating a spacious outdoor terrace that will connect to IPG’s space and that it will be able to exclusively use. In the end, Vornado cut IPG an economical deal in the $50s per square foot for the space at 909 Third Avenue while allowing the company more room to grow than 919 Third Avenue could accommodate, a source said.ĩ09 Third Avenue is known for having an unusual feature for a Class A office tower a large post office in its base. Vornado had been marketing space at its building for about three years, a source said, noting that the avenue has several large vacancies that have created tough competition. SL Green owns 919 Third Avenue and Vornado, a rival real estate investment trust, is the landlord of 909 Third Avenue. The deal pitted two of the city’s largest commercial landlords in a fight for IPG at a time when big leasing transactions have slowed in the city, especially along Third Avenue, a periphery of Midtown that often experiences market downturns and blips harder than other areas. The company is in a contest with 11 Times Square to hold onto Microsoft, a roughly 250,000 to 300,000-square-foot tenant that is currently located at Vornado’s 1290 Avenue of the Americas and is in the process of deciding whether to renew or relocate. Vornado, one of the city’s largest commercial real estate owners, meanwhile has continued to try to head off losing a large tenant of its own. The deal is one of the largest to get done in Midtown during the summer, a traditionally slow period of leasing in the city that has been appeared particularly lethargic this year because of continued economic and political uncertainty in the face of an upcoming presidential election. The company, one of the largest advertising and media conglomerates in the world, wanted to remain nearby to preserve commuting patterns for its employees, making 909 Third Avenue a good fit. The deal comes during a slower pace of leasing in Midtown, a lull that has been felt especially in peripheral areas of the neighborhood like Third Avenue, where space typically already trades at a discount to the area’s main commercial thoroughfares.Ī person familiar with the deal said that IPG is moving from 919 Third Avenue, which is owned by the rival REIT SL Green, because it wants to expand and there is little room in that property to grow. The lease appears to be a significant deal for Vornado, the tower’s landlord, which for years has struggled to fill the block of vacancy that will now be largely absorbed by IPG. Weber Shandwick and the other IPG agencies will take floors five through nine in 909 Third Avenue, as well as other smaller pockets of space in the 1.3 million-square-foot building.
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