Deloitte’s Departure at 1633 Bway Leaves Paramount Group With 212,000-SF Block
Lauren Elkies Schram May 6, 2016, 1:15 p.m.
The accounting firm departed 212,052 square feet on floors 35 through 38 at the Midtown West building called Paramount Plaza, according to a first-quarter earnings call this morning. News about Deloitte came as Albert Behler, the chairman, president and chief executive officer of Paramount, said that the company is bullish on the New York City market in general.
For more than 15 years, Deloitte occupied 2 percent of the building, and paid an annualized rent of $16.7 million, according to Paramount’s latest earnings supplement, or $78.88 per square foot. The space became available on April 1.
Ted Koltis, an executive vice president of leasing for Paramount, said on the call that executives don’t know whether Paramount will lease the space in its entirety or break it up.
The 48-story Paramount Plaza, between West 50th and West 51st Streets and Broadway and Eighth Avenue, is 92.4 percent leased, according to the supplement.
As CO reported last month, Chicago-based law firm Vedder Price will relocate to 52,555 square feet on a lower floor at 1633 Broadway as a cost-saving measure. And in February, CO reported that Equinox Fitness was remaining in 28,000 square feet in the building.
Paramount Group acquired the remaining 25 percent of the 2.6-million-square-foot building it didn’t own from Beacon Capital Partners in 2014, according to Commercial Mortgage Alert.
Inquiries to several Deloitte spokespeople were not returned.
Additional reporting provided by Cathy Cunningham.