Siemens Taking 35K SF at Vornado’s 1 Penn Plaza [Updated]
The company has agreed to take 35,000 square feet on the 11th floor of the 57-story, 2.7-million-square-foot office tower, which occupies the block bound by West 33rd and West 34th Streets and Seventh and Eighth Avenues, Crain’s New York Business reported Tuesday. The location will house Siemens’ Mobility division, which specializes in transportation and infrastructure technology and will relocate from its current offices at nearby 498 Seventh Avenue.
The deal includes an option for Siemens to take the entire, roughly 60,000-square-foot floor at 1 Penn Plaza should it require additional space, according to Crain’s. The German conglomerate is reportedly paying rents in the high $60s per square foot and plans to begin occupying its new space by this July. Siemens will maintain its corporate office at 527 Madison Avenue in Midtown, which houses its legal, finance and communications operations in the city.
Peter Van Duyne of Cushman & Wakefield (CWK) represented the tenant in the transaction, while Vornado was represented in-house by Josh Glick and Jared Silverman. Representatives for C&W and Vornado did not immediately provide comment.
Siemens will occupy space left vacant by U.S. Customs and Border Protection, according to Crain’s, with the federal agency having relocated its offices to 1 World Trade Center in the Financial District.
The massive 1 Penn Plaza is the centerpiece of Vornado’s sizable portfolio of commercial real estate assets in the area surrounding Pennsylvania Station, which include 2 Penn Plaza, 11 Penn Plaza, 330 West 34th Street and 7 West 34th Street. And alongside partners Related Companies and Skanska, the real estate investment trust is undertaking the sprawling redevelopment of the James A. Farley Post Office Building into the new Moynihan Train Hall, which will include 730,000 square feet of office space and 120,000 square feet of retail.
Update: This story has been updated to reflect that Siemens is moving its Mobility division to 1 Penn Plaza from 498 Seventh Avenue.