The negotiations behind Aegis Media’s renewal and renovation deal at 150 East 42nd Street
By Jotham Sederstrom October 18, 2011 9:39 am
reprintsThe company moved into 150 East 42nd Street from its old offices at 3 Park Avenue in 2008. The space the company inherited was not as open and collaborative as it would have liked, said Mr. Bernstein.
With the theme of hosting all its divisions in one open, collaborative space, the company tabbed HLK Architects to tear down both floors and redesign them from scratch.
“It’s not really about fitting more bodies in,” said Mr. Wein. “It’s about designing a space which is much more functional and helps us deliver our strategy.”
Mr. Wein declined to elaborate on the precise cost of the renovations, saying it was “certainly more than $10 million.”
During negotiations, Mr. Bernstein said that Aegis’s plans to rebuild its office space helped in keeping the company at 150 East 42nd Street.
“From the building’s perspective, they knew that if they couldn’t accommodate us with alternative space they wouldn’t have the option to keep us,” Mr. Bernstein added.
The renovations will be done a floor at a time with “minimal disruption,” said Mr. Wein. Aegis will be working out of a temporary space in the building’s mezzanine floor during year-long renovations.
The company has already started renovations and is expected to finish some time in the middle of 2012. Completing the renovations before its current sublease expires in 2013 guarantees Aegis will enjoy the following 15 years in brand-new space.
Aegis isn’t done. The company may look to move into additional space should its success continue to grow.
“Hopefully within six months we’ll be looking for more space, whether it’s an expansion or something nearby,” said Mr. Wein.
Aegis also plans to give competing advertising giant WPP, whose New York City headquarters are at 100 Park Avenue, a run for its money.
“Part of our advantage is, as the advertising world changes, we’re unencumbered by the legacy of creative agencies,” said Mr. Wein, who later added, “To quote Charlie Sheen, we’re ‘winning’ at this moment.”
drosen@observer.com
