Lease Beat

IDEO Relocating in Soho

Global design consultancy IDEO is relocating to 408 Broadway early next month after signing a 12-year, 28,500-square-foot lease for the building’s fourth and fifth floors. Asking rents were in the high-$40s per square foot.

“This deal helps extend Soho’s creative hub south past Canal Street, where transportation and amenities are still great but rents are more palatable,” said Justin DiMare of Newmark Grubb Knight Frank, who represented the landlord United American Land in the lease and purchase of the vacant building in 2011. “The building is now fully leased long term.”

408Bway2The loft-style building at 408 Broadway features high ceilings, large floor plates and a roof deck that the landlord is in the process of refurbishing. Spin Media had previously occupied the fourth floor at the property but with 5 years still remaining on its lease and having published the final issue of Spin magazine in late 2012, the company negotiated an early termination.

Mr. DiMare has been involved with the property since representing the buyer in 2011. That year, United American Land purchased the property in a deed in lieu of foreclosure transaction. Since that time, Mr. DiMare has helped close 58,000 square feet of leasing, which culminated in the recent IDEO deal, and a fully-leased building. Crains New York first reported the IDEO lease earlier this week.

The tenant was represented by Michael Higgins and Mitti Liebersohn of Jones Lang LaSalle. Brokers representing the tenant did not immediately return requests for comment.

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