McGraw-Hill Offers 200,000 square feet
McGraw-Hill is tossing a little over 200,000 square feet onto the sublease market at 2 Penn Plaza, several sources have told The Commercial Observer.
The publishing company has its headquarters at 1221 Avenue of the Americas but uses other locations like 2 Penn Plaza for ancillary locations.
McGraw-Hill plans to sublet about half of the roughly 450,000 square feet it occupies in the 1.5 million square foot office tower, which is owned by the New York based real estate investment trust Vornado.
According to a source familiar with the company’s intentions, it is planning to market floors it has higher in the 31-story building.
“When a company has space that it wants to divest, it typically seeks to make its better floors available, because they’ll be both more attractive to potential takers and also likely yield the best rents,” the source said, who didn’t want to be named because he wasn’t personally involved in handling the offering.
The source noted that McGraw-Hill also occupies base floors at 2 Penn Plaza. The company has a lease at 2 Penn Plaza that stretches until at least 2020 according to the source.
A spokesman for McGraw-Hill didn’t return calls by press time. It also wasn’t clear which real estate services firm would represent McGraw-Hill in its efforts to divest itself of the space as the floors have not yet been formally brought to market and posted on public databases such CoStar.
The space is one among a few sublease offers or divestitures that have come to market in recent weeks. The Japanese financial company Nomura decided to shed at least 160,000 square feet from its recent 900,000 square foot lease at Worldwide Plaza last month by utilizing an option it had to downsize. The French financial institution Société Générale also decided to place at least two floors, totalling about 72,000 square feet, on the market for sublease at its new home at 245 Park Avenue.