Yeshiva University Signs 160 KSF Lease in Midtown Manhattan
Yeshiva University signed a 32-year lease that will expand its footprint with a new 160,000-square-foot space at Herald Center, an office building in Midtown Manhattan. JEMB Realty owns the Class A property. Savills negotiated on behalf of the tenant, while the landlord was represented in-house.
Yeshiva University will occupy partial mezzanine and ground floor spaces at Herald Center, as well as space from the building’s five through nine floors. Other tenants at Harold Center include ASA College, The Joint Industry Board of the Electrical Industry, Bank of America and H&M, according to CommercialEdge.
The university will use the space to establish a new campus to expand its presence in the Health Sciences field. YU recently launched graduate programs, such as the Nursing program, expected to open this fall, and Occupational Therapy and Speech-Language Pathology programs, which are part of the university’s Katz School of Science and Health.
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The 10-story Herald Center is at 1311 Broadway and encompasses 250,000 square feet. Originally built in 1902 as a retail building, the property was converted to office in 2015, CommercialEdge shows. The current ownership picked up the asset in 1986 and repositioned it through a $50 million capital improvement program that resulted in hosting the largest H&M store in the world, with a 63,000-square-foot footprint. Herald Center features eight passenger elevators, 30,028-square-foot floorplates and 12,016 square feet of retail space.
The mid-rise building sits at the corner of 34th Street and Broadway, within the densely populated area of Herald Square. The location provides easy access to multiple bus and subway stops, while being 3 miles from Lower Manhattan, 8 miles from Washington Heights and within 15 miles of John F. Kennedy International Airport.
Savills’ Vice Chairman of the Nonprofit Practice Group David Carlos worked on behalf of Yeshiva University, while the landlord was represented in-house by Principal Jacob Jerome and Chairman of the Board Morris Bailey.
Big deals in Midtown Manhattan
Manhattan’s office vacancy rate reached 16.6 percent in June, a recent CommercialEdge report shows. The rate was down 60 basis points below the 18.1 percent U.S. figure, while asking rent prices showed an average of $71.34 per square foot, more than double when compared to the national average of $31.67 per square foot.
Recent office leases signed in Midtown Manhattan include Silverstein Properties’ two deals at 1177 Avenue of the Americas. The agreements, closed in July, are totaling 58,500 square feet of space and involve the relocation and expansion of law firm Faegre Drinker Biddle & Reath LLP and the relocation of the Trustees of Columbia University’s offices.
During that same period, CBRE extended and expanded its 180,000-square-foot lease at The MetLife Building, the 3.1 million-square-foot skyscraper owned by Irvine Co. The company has been a tenant at the office tower for 36 years and will continue its stay until 2037.
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