City Department of Investigation Nails Down 276K-SF Lease in FiDi
By Rebecca Baird-Remba August 29, 2017 5:36 pm
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The city’s Department of Investigation is close to inking a 20-year deal for 276,000 square feet at 180 Maiden Lane in the Financial District. (Update: The deal was completed on Tuesday, Sept. 19, according to Crain’s New York Business.)
The law enforcement agency, which is responsible for investigating corruption in New York City government, will occupy the entire 16th through 24th floors of the 41-story office tower near the East River waterfront. The lease would represent a 75,000-square-foot expansion from the agency’s current space, according to The New York Post, which was the first to write about the deal. It would also consolidate five separate DOI offices into one.
MHP Real Estate Services and Clarion Partners own the 1.1-million-square-foot building, which spans a full block between Pine and Front Streets.
DOI will pay $52 a square foot for the first five years of the lease, $57 during years six through 10, $62 for years 11 through 15, and $67 for years 16 through 20, according to a notice published in the City Record. The agency will have the option to expand to the 15th and 25th floors within the first two years of the lease. And it will be allowed to renew the lease twice, each time for five years.
Those rents are in line with what other tenants in the building have paid recently. Consulting company Connex Partners leased space at 180 Maiden Lane last month, at an asking rent of $56 a square foot, Commercial Observer reported.
The city expects to spend as much as $56.3 million renovating the office space, but the landlord will kick in $21.3 million, the City Record notes. If the agency invests the maximum $35.1 million, it will shell out roughly $127 per square foot to renovate its new digs.
While the lease has been signed by the landlord, the Department of Citywide Administrative Services—which handles property for city agencies—has to hold a hearing on the deal next month before the city officially signs it.
DCAS told CO that CBRE (CBRE) was involved in the transaction, but a spokesman for the brokerage declined to comment.
Update: This post has been updated to reflect that this lease was finalized on Sept. 19.
