Chicago-based law firm Vedder Price will relocate to a lower floor of its current New York City office building at 1633 Broadway as a cost-saving measure.
The firm inked a 52,555-square-foot, 10-year deal on the 31st floor of the 2.6-million-square-foot building between West 50th and West 51st Streets, according to its broker, Savills Studley. Asking rent on upper floors of the Paramount Group building range from the mid- to upper-$80s per square foot.
Vedder Price has leased the entire 47th floor, or 47,300 square feet, of the 48-story tower, for its Big Apple operations since 2007, according to the brokerage and CoStar Group.
The Savills Studley team had been in talks to move the law firm to another building in the area, David Goldstein of Savills Studley said in a press release. But the tenant was compelled to stay in the 45-year-old building in the end.
“When this opportunity presented itself we pivoted and reengaged the landlord, Paramount,” Mr. Goldstein said in prepared remarks. “The end result was a win-win for our client, who will end up with substantial savings in moving and renovation costs while avoiding any major disruptions for its team.”
Mr. Goldstein represented the law firm along with colleagues Joe Learner, Jason Perla and Scott Weiss. Paramount was represented in-house by Peter Brindley. A spokesman for the real estate investment trust did not immediately return a request for comment.
Morgan Stanley quadrupled its size at the Times Square building near the end of last year, as Commercial Observer reported in December 2015. The financial institution, which now leases 261,000 square feet at the building, is expected to assume its new space next week.