Less than a year after moving into the sixth floor at William Macklowe Company and Principal Real Estate Investors‘ 20-story building 386 Park Avenue South in Midtown South, digital marketing firm NewsCred doubled its footprint to take the entire 13,000-square-foot fifth floor in the building as well, Crain’s New York Business reported last week.
The 8-year, 13,000-square-foot expansion move in the space with asking rents of $60 per square foot represents a planned build out for the company specializing in branded content that recently closed a new capital investment, said Elie Reiss, a partner at Skylight Leasing.
“One of the reasons why we chose that building is that we were able to negotiate an expansion agreement into the lease,” Mr. Reiss said. He added that the landlords’ recent renovations helped it “to appeal to the younger, hipper tenants.”
Mr. Reiss represented NewsCred in the negotiations, while Paul Amrich and Neil King of CBRE negotiated on behalf of the landlords.
“Growth and our ability to accommodate it with floors that we had coming back in the future was an important part of the initial negotiations,” said Mr. King. But, the new funding for the tech-oriented firm sped that expansion, he said, adding, “Taking on this additional floor was faster than anyone anticipated.”
The 19th and 20th floors of the building, a potential two floor space made more enticing by both a 1,500-square-foot enclosed glass space on the roof and a 3,000-square-foot terrace deck, remain vacant at the building with asking rents of around $80 per square foot, according to Crain’s.