Year in Review – The Largest Office Relocations for TAMI Firms in 2017

February 1, 2018

Lance Leighton

Founder – TechOfficeSpaces.com

Senior Managing Director, Savills Studley

New York State Licensed Real Estate Salesperson

Call 212-326-8668

2017 was a solid year for New York City commercial office leasing.  Though the crystal ball for the future of Manhattan’s office market is a bit cloudy at the moment, there were many notable lease renewals, extensions and expansions throughout The Big Apple.  That being said, a plethora of big-name tenants opted to upgrade to snazzier digs, most of which chose brand new or recently renovated assets, specifically with a focus on amenities for their employees.  The two largest new moves were not surprisingly completed by tech juggernauts, Amazon and Spotify.  Combined, the behemoths committed to nearly 740,000 rentable square feet, or roughly 40% of the approximately two million square feet of lease volume being featured .

Below is a list of the most notable office relocation’s of 2017 within the TAMI (technology, advertising, media and information) sectors throughout Manhattan.  The information is based on data compiled by the TechOfficeSpaces.com team.

TenantApproximate Square FootageBuildingFloorsPrevious AddressDescription
Spotify378,0004 World Trade CenterEntire 62nd - 72nd Floors620 Avenue of the AmericasSpotify, the music, podcast and video streaming service, completed a massive relocation to Silverstein Properties' 4 World Trade Center. The 2.5 million square foot trophy office building was completed in 2013 and designed by world renowned architect Maki and Associates. The tower is one of the most technologicially advanced and sustainable strucutres of the 21st Century. Home to The Port Authority of New York and New Jersey, City of New York Human Resources Administration, and MediaMath, the building is located at the heart Financial District and has direct access to virtually every trainline. The lease deal reportedly included an $11 million rent reduction over the 15-year term.
Amazon359,4715 Manhattan WestPartial 10th, Partial 8th, Entire 7th and Entire 6th Floors1350 Avenue of the AmericasThe e-commerce giant announced in September that it signed a 360,000 square foot, 15 year lease at Brookfield Property's Manhattan West. It will serve as the company's main location for advertising, software engineers, data analysts and economists in New York City. The tech juggernaut will take all of the 6th and 7th floors and parts of the 8th and 10th floors, bringing the building's occupancy rate to 99 percent. This expansion will create 2,000 new jobs in New York. They were offered up to $20 million in tax credits for this transaction and will invest $55 million to outfit its new space. 5 Manhattan West is part of an 8-acre, 6 building mixed use development that Brookfield is constructing on Manhattan's West Side.
Business Insider88,0001 Liberty PlazaEntire 9th, 8th Floors150 Fifth AvenueBusiness Insider made the jump from Midtown South to Lower Manhattan in an 88,000 square foot lease at Brookfield's 1 Liberty Plaza. The business and tech website relocated its headquarters from 150 Fifth Avenue in the Flatiron District and will now occupy the entire 8th & 9th floors at Brookfield's downtown property. Business Insider was attracted to this building's prime location, at the crossroads of the Fulton Transit Center and World Trade Center Path Station, making it an simple destination for employees commutation patterns. The tower's large, open floor plates work well for the collaborative and high-density newsroom that Business Insider is creating.
SKDKnickerbocker, PMX Agency, Code and Theory, and Harris Insights (Stagwell Group Subsidiaries)83,9551 World Trade CenterEntire 63rd, Entire 62nd FloorsVariousThe Stagwell Group, an investment firm that owns digital marketing, advertising, research and communication companies, SKDKnickerbocker, PMX Agency, Code and Theory, and Harris Insights, has taken space at 1 World Trade Center. The company signed a lease for 83,955 square feet on the entire 62nd and 63rd floors of the 104-story tower. Stagwell leased these floors knowing that it was leaving about 25% of them open for the potential to relocate more of its subsidiary companies as their existing leases expire. The idea behind putting all of these groups under one roof was to foster more collaboration and growth. Each firm will have demised office spaces but will share the conference rooms and eat-in pantries.
Take Two Interactive61,3831133 Avenue of the AmericasEntire 3rd, Entire 2nd Floors622 BroadwayLeading developer, publisher and marketer of interactive entertainment, Take Two Interactive, has inked a 61,383 square foot deal at the Durst Organization's 1133 Avenue of the Americas. Take Two is also getting several perks as a part of the 15-year deal including its own entrance on West 44th Street and a 7,000 square foot outdoor space with outstanding views of Bryant Park, exclusive to the company. Take Two is relocating and downsizing from its 86,256 square foot office at 622 Broadway. The 1.1 million square foot limestone tower was completed in 1970 and underwent a $10 million renovation in 2013, which included a brand new entrance to the lobby.
Harry's60,000One Hudson Square at 75 Varick StreetPartial 9th Floor161 Avenue of the AmericasFour-year old online men's razor start-up, Harry's, relocated its offices within Hudson Square to 75 Varick Street, also known as One Hudson Square. They inked a 10-year lease for 60,000 square feet in the landmarked former factory. In an effort to incentivize the expansion, Empire State Development Corporation offered the company $1.4 million in tax credits and in exchange they've pledged to create 188 new jobs over the next 5 years.
Justworks59,140601 West 26th StreetEntire 4th Floor151 West 26th StreetJustworks, a software platform that automates payroll, benefits and compliance, commited to subleasing 59,140 square feet from Tommy Hilfiger at 601 West 26th Street, also known as the Starrett-Lehigh Building. The partial 4th floor sublease was built, furnished, wired, and ready for Justworks' occupancy. The company will be relocating from 151 West 26th Street for a short-term sublease that extends through June of 2020. Owned by RXR Realty, The Starrett-Lehigh Building is home to some of the world's most recognizable creative brands and is a recognizable fixture in West Chelsea.
Booking.com53,38428 Liberty StreetEntire 29th, Partial 28th Floors100 William StreetRelocating their offices within the Financial District, travel website Booking.com signed a 53,000 square foot lease at 28 Liberty Street. They will occupy the entire 29th and partial 28th floors for 10 years. The company had previously been in 8,044 square feet at 100 William Street since 2011 but experienced rapid growth. They were acquired by Priceline Group in 2005 for $133 million and have nearly 200 offices in 70 countries.
MAC86,000One SoHo SquareEntire 10th -13th Floors561 BroadwayThe massive repositioning of One Soho Square has attracted a number of TAMI tenants, including most recently, the cosmetics company, MAC. MAC inked a lease for 86,000 square feet on the western side of the asset that will include new glass penthouse floors and a roof deck.
GrubHub81,2205 Bryant ParkEntire 12th, Partial 13th and Entire 15th Floors1001 Avenue of the AmericasUpon its merger with Seamless, Grubhub shifted its workforce to Blackstone's 5 Bryant Park. The Bryant Park asset recently underwent a $40 million renovation, including a brand new lobby, elevator cabs, retail facade and mechanical systems. Over the past number of years, the Bryant Park submarket has become a preeminent location for some of the largest names in tech, including Salesforce.
Major League Gaming27,039250 Hudson StreetEntire 6th Floor3 Park AvenueMajor League Gaming moves its headquarters from Hudson Square to the Cohen Brother's 3 Park Avenue.
Glossier26,079One SoHo SquareEntire 10th Floor123 Lafayette StreetOnline cosmetics company joins Warby Parker, MAC Cosmetics, and Flatiron Health in One Soho Square. The three year old beauty and skincare unicorn plans to create 282 jobs in the upcoming years. Though Glossier is still a growing company, they opted to take a long-term 11 year lease.
Momentum Worldwide58,000300 Vesey StreetEntire 15th, Partial 14th Floors250 Hudson StreetAdvertising agency, Momentum Worldwide, exited Hudson Square to set up its New York headquarters at 300 Vesey Street in Brookfield Place. The Interpublic Group subsidiary joins Microsoft, American Express, CME Group, Coca-Cola, and Verizon at the former World Financial Center, which has re-branded itself as both a food and retail destination, perfect for providing the work-life balance growing TAMI tenants are seeking. The high-profile lease was for the top floor of the building and includes a private roof-deck.
Vayner Media88,00010 Hudson YardsEntire 25th, Entire 24th Floors315 Park Avenue SouthAs the flock to quality office product continues in New York City, Vayner Media, the media conglomerate led by Gary Vaynerchuk, opted to move its Manhattan digs to New York's newest destination, Hudson Yards. Retaining the architects from their 315 Park Avenue South location, Vayner Media's new Hudson Yard's space is a prime example of what is being called the "Google Effect" on TAMI office space design. Laid out with an array of meeting rooms and common areas, Vayner's new space indicates that collaboration is a true priority for a growing media power-house.
ESPN19,00089 South Street (Pier 17)Partial 3rd FloorVarious The Disney owned sports media company will be opening its first New York City studio at the South Street Seaport's 89 South Street, also known as Pier 17. Though ESPN and Disney had historically maintained office space in Manhattan, broadcasting had been exclusively carried out from their Bristol Connecticut Headquarters. The new location features sweeping views of both the Brooklyn and Manhattan skylines. The new Seaport facility is set to open early spring of 2018.
Blue Apron25,00028-40 West 23rd StreetPartial 5th Floor5 Crosby StreetThe start-up meal-kit company subleased an additional 25,000 square feet from AppNexus in light of their recent IPO. While maintaining their principal office at 5 Crosby Street, Blue Apron opted for this short-term solution instead of executing a large headquarters transaction. However, the start-up is still engaging the market for a more permanent headquarters (roughly 100,000 square feet) as this sublease was merely a short-term fix.
Flatiron Health108,000One SoHo SquareEntire 2nd - 5th Floors200 Fifth AvenueWith plans to add over 300 new employees over the next 5 years, rapidly growing Flatiron Health is exiting its headquarters at 200 Fifth Avenue in favor of a more permanent move to One Soho Square. Having recently underwent extensive renovations, the asset has attracted many notable tech firms over the past several years.
Comcast100,0001407 BroadwayPartial 14th, Entire 12th, Entire 11th Floors30 Rockefeller PlazaThe cable and internet provider inked a 100,000 square foot deal in the garment district at Shorenstein Properties' 1407 Broadway. Though it is unclear which divisions will occupy the new space, it is an indicator that the communications company is reshuffling its New York office portfolio.
theSkimm21,74150 West 23rd StreetPartial 5th Floor49 West 23rd StreetTheSkimm, a subscription-based digital newsletter, has expanded its office footprint four-fold in the Flatiron District. Moving just next door to 50 West 23rd Street, the online media sight took a sublease from Grovo, providing a flexible short-term solution to TheSkimm's expanding and evolving headcount.

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