Two just-signed, major, new deals demonstrate the sustained appeal of Related’s Hudson Yards complex — and the preference for newer buildings over highly-regarded older ones.
Warner Bros. Discovery (WBD), the largest tenant at 2.6 million square-foot 30 Hudson Yards, has been consolidating operations since AT&T’s Warner Media merged with Discovery in 2022. The resulting space shakeout freed up 310,000 square feet of its 1.4 million sf at the tower — and they were swiftly spoken for.
Sources said law firm Covington & Burling signed a sublease for 235,479 square feet, expanding from 200,000 sf at 620 Eighth Ave., the New York Times Building, which it will leave next year.
Proprietary trading firm Susquehanna International Group (SIG) subleased 73,735 square feet, moving from 140 Broadway downtown.
The Hudson Yards tower opened in 2019, the Times tower in 2007 and 140 Broadway in 1967.
The reasons for the two firms’ relocations weren’t immediately clear. Neither the tenants, Related or the brokers involved would comment on any aspects of the situation, which we learned of through market sources.
Other corporate occupants of 30 Hudson Yards — which is home to top-floor restaurant Peak and the Edge observation deck — include KKR, Wells Fargo and Related’s own headquarters, all of which own their spaces as condo units. WBD still has the largest presence in the tower, including five floors totaling 300,000 square feet for CNN.
Our sources also said that Covington’s and SIG’s subleases from WBD will convert to direct leases with Related at certain points in the future.
It was also understood that in conjunction with the transactions, Related plans to redesign the tower’s ground-floor lobby, sky lobby and amenities — including a high-floor outdoor terrace that was previously unused.
Brokers involved were CBRE’s Robert Alexander, Anthony Manginelli, Taylor Callaghan and Ryan Alexander for WBD.
Savills’ Matthew Barlow and Steve Barker repped Covington. Newmark’s Brian Goldman, Ross Perlman and Matthew Lorberbaum acted for SIG.
Credit: Source link
