July 31, 2009

Bigger Can Mean Better - At Least in CRE

The law firm Orrick, Herrington & Sutcliffe LLP just signed the biggest office lease so far this year in Manhattan.

The law firm signed a lease for 220,000 square feet in the Black Rock office building (CBS headquarters).

According to the WSJ article, the deal was done in the low-to-mid $70's per square foot, and CBS, who owns the building, agreed to spend $150 per square foot to renvote the space (that's $33,000,000 in renovations).

When Orrick first started their search for space two years ago, asking rents for Class A Manhattan office space were $120 - $140 per square foot and build-out allowances were in the $45 per square foot range.

Oh, how things can change in such a short period of time.

The two big takeaways from this story are:

1) Patience is in deed a virtue
2) Being a 220,000 sf user sure can be nice

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