Months of negotiations between SPJ Properties and Microsoft have finally paid off, with the tech giant signing a 230,000-square-foot lease at its new Midtown headquarters at 11 Times Square – and solidifying one of the top leasing deals of the year.
The company eyed the new space for months, as rumors swirled it would be vacating Vornado’s 1290 Avenue of the Americas, and last month transaction is the third biggest non-renewal leasing transaction of 2012.
Negotiations over outdoor signage at 11 Times Square, among other issues, has delayed a deal between SPJ Properties and Microsoft expected today, sources told The Commercial Observer.
After eyeing the space for months, the company was shuffling papers around this week with owner SPJ Properties to get the deal completed; but the signing of a letter of intent, which sources said was scheduled to happen today, likely won’t be completed until after Thanksgiving, said people familiar with the deal.
The 16-year lease is for 260,000 square feet across floors four through 11, at a rate in the low $60’s, a broker who reviewed a preliminary version of the lease said.