Real Estate Roundup: Latest Leases Cap Busy Year
Simpson Thacher & Bartlett also renewed the lease on its Manhattan office earlier this year, locking in 595,000 square feet of space at 425 Lexington Avenue, according to GlobeSt. That deal will provide a steady stream of income to JPMorgan Chase Asset Management—which bought the 31-story midtown skyscraper from real estate development firm Hines for a reported $750 million after Simpson signed on the dotted line—for the next 20 years.
CBRE’s Flippin says downtown Manhattan—where Brookfield Office Properties is marketing a bevy of new office space, including 400,000 square feet that Jones Day is reportedly planning to lease—and midtown's Hudson Yards development are among the neighborhoods attracting the interest of office-shopping firms.
Drinker Biddle & Reath, whose downtown Manhattan offices were devastated by the tragedy of September 11, 2001, stayed downtown by doubling the amount of space it occupies in the city earlier this year, signing a lease for 15,375 square feet on the 38th floor of Larry Silverstein’s office tower at 1177 Sixth Avenue, according to the Commercial Observer.
Drinker Biddle, which now has 30,750 square feet in the 50-story building, has also signed new leases this year on its office in Florham Park, New Jersey, and its headquarters in Philadelphia. The firm reduced its space at the latter location from 206,000 square feet to 155,000 square feet, according to Philly.com.
Some law firm leases can become onerous. Law360 reported this week that Weil, Gotshal & Manges's long-term office deal in Dallas is exacerbating the firm's Lone Star State woes. K&L Gates, meanwhile, is confronting its own real estate headaches in London—where payouts to partners have surpassed profits—by seeking to reduce its exposure to the city’s high rental costs, according to U.K. publication Legal Week.
Other leases can even haunt firms that have died. Witness the situation now playing out involving the suit filed last month by Dewey & LeBoeuf’s former New York landlord against 450 former partners of the now-bankrupt firm, according to our previous reports.
Two other Am Law 100 firms addressing their London real estate needs are Willkie Farr & Gallagher and Winston & Strawn, with both signing new leases this year at CityPoint, a 36-story office tower with a troubled financial history that is also home to the local offices of Cravath, Swaine & Moore, Simpson, and Vinson & Elkins.
DLA Piper, which is poised to save on rent by relocating its Sydney office after signing a new 10-year lease earlier this year, also hopes to consolidate its two London offices into one building as it searches for 200,000 square feet of space, according to Legal Week.
Back on this side of the Atlantic, DLA announced this year that it would relocate its office in Wilmington to the 21st floor of the 23-story Chase Manhattan Center, Delaware's tallest building. (Earlier this year Fox Rothschild also signed a new 11-year lease for 20,184 square feet at Wilmington’s Citizens Bank Center.)
DLA, which is in litigation with two real estate services businesses in Chicago over an office remodeling, also inked a lease this summer in the Windy City for 175,000 square feet of space in a 45-story skyscraper under construction in the West Loop area. McDermott Will & Emery signed up to become the building’s anchor tenant, taking 225,000 square feet of space in what Bloomberg reports is Chicago’s largest office project since 2008.