Flex-space provider Convene inked a lease for space in Soho, at the same office property where its new landlord is exploring a deal of its own.
Convene signed for 32,000 square feet at Scholastic’s 555 Broadway, the Commercial Observer reported. The location is expected to open next spring, marking the company’s 16th location in New York City but first in the downtown neighborhood.
Details about the asking rent or the length of the lease were not disclosed. The average asking rent in Lower Manhattan in the second quarter was $45.69 per square foot, according to CBRE.
Newmark’s Karen Bellantoni and Jackie Totolo represented Scholastic in the lease negotiations.
“The Soho submarket has been one of the most requested destinations from our existing clientele, and we wanted to ensure that we could create a special venue that speaks to the energy and vibrancy of the neighborhood,” Convene senior vice president Brian Holland said in a statement.
It’s unclear what will happen to Convene if Scholastic no longer owns the building, however, which is a legitimate possibility.
The book publishing giant is exploring a sale of part or all of its property at 555-557 Broadway in the trendy Manhattan neighborhood, tapping a Newmark team led by Adam Spies and Josh King to seek potential buyers.
Scholastic would then look to lease back the space from the new owner.
The publisher occupies all but two floors of the office property, spanning roughly 300,000 square feet. As of last spring, the property’s retail space was fully leased to Sephora and Capital One, while two office floors were available.
The publisher purchased its U.S. headquarters at 555 Broadway in the spring of 2014 for $255 million. It acquired the 325,000-square-foot property from South Carolina-based landlord ISE America, which had owned the building since 1996.
— Holden Walter-Warner
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