Biddle Sawyer, a chemical company, is taking 11,500 square feet at 505 Eighth Avenue.
The firm, which will be relocating from the nearby office property 21 Penn Plaza, will lease 505 Fifth Avenue’s entire 15th floor for 10 years for rents in the $30s per square foot.
The deal was the product of some nifty leasing by the building’s agent Eric Gural, whose family is among a partnership that owns the property and several other office buildings in the city.
Earlier this year, another tenant in the building, the non-profit company Common Ground, occupied the 15th floor, but was coming to the end of its lease and wanted to upgrade its space.
“They realized that it would be too difficult to renovate their space while they were occupying it,” Mr. Gural said.
Instead of letting Common Ground slip away to another office property, Mr. Gural leased the firm the entire fifth floor of 505 Eighth Avenue, which is also 11,500 square feet, in November.
Normally companies in search of an upgrade are loathe to trade to space lower in a building because they will lose the light and views they enjoyed on the higher floors. In Common Ground’s deal, however, Mr. Gural convinced the firm to take the lower floor in order to allow them to renovate the space before they move in. The deal also included a renewal of about half of the 12th floor that Common Ground also occupies.
Common Ground’s deal shifted the vacancy at 505 Eighth Avenue from the fifth floor to 15, a more easily marketable space Mr. Gural said. And sure enough, he quickly landed a deal.
Dan Segal, a broker at the real estate services firm Newmark Knight Frank, represented Biddle Sawyer in its deal. Mr. Gural’s father Jeff Gural is a founding partner of Newmark Knight Frank and Eric is an executive there as well.
Dan Geiger, Staff Writer, is reachable at DGeiger@Observer.com