Case Studies

 

Transaction Details

Client
Goodwin Procter LLP

Property
New York Times Building
New York, NY

Transaction Size
216,927 square feet

Transaction Type
Lease Relocation

Industry

Prestigious Law Firm Leases 216,000 SF at New York Times Building  

 

Client Situation

Goodwin Procter, a Boston-based law firm with seven offices across the country, had outgrown its 100,000-square-foot New York office at 599 Lexington, where the firm had been located for eight years.   The firm’s lease was set to expire in November 2008, so it started the real estate process in January 2006.  Goodwin Procter needed approximately double the amount of space it was leasing, as well as expansion options to accommodate its project growth.

Consideration Analysis

As witness to the shrinking supply of Class A office space and unprecedented escalating asking and taking rents, Goodwin Procter’s partner in charge of real estate approached Studley (now Savills Studley) to locate at least 200,000 square feet in a prestigious building, owned by a reputable landlord and accessible to transportation.  The firm considered moving Downtown but opted to remain in Midtown in proximity to the majority of its clients.   

Studley and Goodwin Procter had narrowed their search to the Verizon Building, which Equity Office Properties sold to Blackstone Real Estate Group near the end of their lease negotiation.  Blackstone rejected the rental rate to which EOP had agreed and responded with a number that Studley and Goodwin Procter felt was unrealistic, even within a market with demand that was outpacing supply.

Result

Goodwin Procter revisited the new New York Times Building, a building initially rejected by the firm because of its location far west.  Since that time, however, the building has received rave reviews and has since signed three other law firm tenants.  In July 2007, the firm signed a 216,000-square-foot lease, 154,585 square feet (or five floors) from the New York Times, which owns 52% of the building as an office condominium and found that it had excess space to lease, and 62,342 square feet (or two floors) and an expansion floor from Forest City Ratner, the landlord who developed and owns the remainder of the building.

Leasing the majority of its space from the New York Times gave Goodwin Procter the advantage of a below-market rental rate generally associated with sublease space, however since the New York Times also owns its portion of the building; Goodwin Procter receives the attendant benefits of a direct lease.  Goodwin Procter will also enjoy the state-of-the-art infrastructure that accompanies new construction, as well as prominence in one of the most talked about buildings in Manhattan, which is now home to several prominent tenants.

 

Meet the Team

Howard Nottingham
Vice Chairman

Howard has worked in the commercial real estate industry for 31 years, the last twelve of which were with Savills Studley. An accomplished veteran real estate advisor, Howard represents many of Savills Studley’s most prestigious clients in Manhattan on some of the firm’s most complex transactions. His client roster speaks volumes to Howard’s expertise, client service and professionalism.

+1 212 326 1012

 

John A. Mambrino
Vice Chairman

A 20-year Savills Studley veteran, John Mambrino has become one of the firm’s top-producing brokers, earning him a coveted position as one of the firm’s principals. John is accomplished with assisting partnerships and corporations with developing and implementing their strategic plans and providing full-service tenant representation services, which includes the acquisitions and disposition of facilities across the New York metropolitan region. His understanding of the needs of both tenants and landlords, having worked as a landlord agent before joining Savills Studley, provide him with insight and leverage to negotiate the most advantageous transaction terms for his clients.

+1 212 326 1025

 

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