The New York Metropolis Board of Training Retirement System is making a long-term wager on Downtown Manhattan.
The pension system, also referred to as BERS, signed a 78,000-square-foot lease at 55 Water Street, increasing its footprint on the sprawling Monetary District workplace tower and committing to the constructing for the subsequent three a long time, based on CBRE.
BERS already occupies 51,000 sq. ft on the constructing’s fiftieth flooring as a subtenant. Underneath the brand new settlement, it’s going to take the whole fiftieth flooring and add a ground-floor retail presence by way of a 30-year direct lease with the owner, the Retirement Methods of Alabama. The asking lease was not disclosed.
A CBRE crew together with Howard Fiddle, Bradley Gerla and Evan Haskell represented the proprietor. Savills’ Marc Shapses represented BERS.
The deal marks one other leasing win for 55 Water Avenue, the 4 million-square-foot workplace complicated that has emerged as one among Downtown’s extra lively buildings because the neighborhood works its manner again from the pandemic-era droop. Tenants have inked offers for roughly 275,000 sq. ft of leasing on the property over the previous 18 months, based on CBRE. The 53-story tower options the Elevated Acre, a one-acre public park perched 40 ft above the streets of Decrease Manhattan.
The lease provides to a string of current transactions on the tower. Final fall, brokerage companies agency GFI Group renewed its 64,000-square-foot lease and expanded by one other 65,000 sq. ft, bringing its complete footprint to roughly 129,000 sq. ft. Telecommunications supplier MetTel expanded to 69,000 sq. ft earlier within the yr, whereas engineering consultancy Jaros, Baum & Bolles signed a 68,000-square-foot lease. Transportation know-how agency Verra Mobility additionally took a 57,000-square-foot sublease within the constructing.
Downtown leasing has gained momentum for the reason that first quarter, although it nonetheless trails Midtown’s tempo. Availability has tightened 4 % yr over yr, rents have climbed above $61 per sq. foot, and the market posted almost 1.8 million sq. ft of leasing exercise by way of the primary 5 months of the yr, based on CBRE.
