Viva la Recessione! Law Firm Scores Discounted Mad Ave Digs
Pavia and Harcourt, an international law firm specializing in Italian clients, is vacating 18,000 square feet in Ruben’s 600 Madison for some newly renovated digs at nearby 590 Madison.
The 13,000-square-foot lease in the Larrabee Barnes-designed IBM tower runs for five years, according to Newmark Knight Frank‘s Arthur Draznin, who repped the tenant. David Kleinhandler of CB Richard Ellis repped the landlord. After 35 years in one spot, what could possibly persuade an old-school law firm to move next door?
“It was a very positive move,” Mr. Draznin said. “They moved into an almost brand-new, four-year-old space … It was a beautiful, modern, high-quality installation that would have cost a minimum of $200 a square foot [to renovate].”
The 60-year-old firm’s hop to the 1 million-square-foot landmarked building shows the “flight to quality,” said Mr. Draznin, which he said is being undertaken by a number of mid-sized and larger law firms. “Rents in 590 before the market collapsed were in excess of $120 a square foot,” he said, but in this case the asking rent was $58 a foot.