BlackRock doesn’t seem to mind adding space at its New York City headquarters at the drop of a hat. So what’s another roughly 200,000 square feet?
The asset manager is subleasing 194,000 square feet from Meta at Related Companies’ 50 Hudson Yards, the Commercial Observer reported. The sublease was first disclosed in Savills’ third-quarter office report.
Terms of the sublease were not disclosed. Asking rents at the building ranged from $175 to $240 per square foot when it opened three years ago; the average asking rent in the neighborhood during the second quarter was $153.52 per square foot, according to Avison Young.
A JLL team including Peter Riguardi, Matthew Astrachan and Joseph Messina arranged the sublease.
The sublease represents a majority of the space Mark Zuckerberg’s company freed up at the end of 2022, when it put 250,000 square feet of its 1.2-million-square-foot space on the market.
The deal brings BlackRock’s footprint at the building to 1.24 million square feet, approaching half of the 2.9-million-square-foot, 77-story tower. BlackRock previously expanded last July when it tacked on an additional 50,000 square feet, inching past the 1 million-square-foot mark. It first committed to the building in 2016, agreeing to take 850,000 square feet for 20 years.
Manhattan office tenants leased 9.4 million square feet in the third quarter, a 2 percent jump from the second quarter and almost 27 percent higher than the five-year quarterly average, according to a recent Colliers report. Leasing volume surpassed 30 million square feet for the entire year, surging past pre-Covid levels and marking the strongest period of year-to-date demand since 2002.
If the third-quarter pace holds, the year will end north of 40 million square feet leased, which would be about 20 percent higher than 2024, per Colliers.Â
— Holden Walter-Warner
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